Should I Buy Twitter Stock Now
This comes after weeks of back-and-forth as Musk purchased a large amount of the company's stock and then forced the board to take the 'poison pill' to avoid a hostile takeover. Musk has been very public about his discontent with Twitter's board of directors and is adamant about changing the platform. He's mentioned rolling back content moderation and implementing a largely-asked-for edit button on published tweets.
should i buy twitter stock now
However, once Musk follows through on his promise to take the company private, the ability to buy more shares will be over. But even though the deal was struck today, you'll still be able to buy or sell Twitter stock until the deal is closed.
So if you desire to have an ownership stake in the future of Twitter before it's taken private, you'll need to open a brokerage account where you can buy and hold your stocks. It's free to open an account with brokerages like Fidelity, Robinhood or Vanguard, which let you buy and sell stock for free.
"Depending on how long you've owned Twitter stock, you would be subject to short-term capital gains or long-term capital gains when the tender happens. You should consult with a tax specialist before making a decision just as you would before making any other trades or financial decisions in regards to the taxation of your taxable portfolio," according to Anastasio.
The share price of Twitter, Inc. (TWTR) is little changed year-to-date, a far cry from its internet peers, who have mostly seen their stocks plummeting amid the Great Reset. Twitter shareholders have Elon Musk to thank as the enigmatic Technoking of Tesla, Inc. (TSLA) disclosed his approximately 9% stake in the social media platform in early April.
Twitter (TWTR) stock has been on a roller-coaster ride ever since Elon Musk made a highly speculative bid to acquire the social media company. Now, as Musk seeks to renegotiate or pull out of the deal, is Twitter stock a buy?
Twitter stock jumped 27% on April 4, after Musk revealed he had purchased a 9.2% stake in the company. Musk, the chief executive of Tesla (TSLA), then made it known he intended to acquire the company outright, offering $54.20 a share in cash for all outstanding shares. The deal valued the company at $44 billion.
Musk has since sought several ways to pull out of the deal. One of them was based on disagreements over how many Twitter accounts were spam or fakes. After Musk pulled his offer, Twitter stock dropped 7%.
According to the IBD Stock Checkup, Twitter has a weak IBD Composite Rating of 55 out of a highest-possible 99. When choosing growth stocks for the biggest potential gains based on the CAN SLIM investment paradigm, focus on those with a Composite Rating of 90 or higher.
Among other proprietary IBD ratings, Twitter has a Relative Strength Rating of 78. The rating means Twitter stock currently outperforms 78% of all stocks in the IBD database. That's over the past 12 months. Ideally, look for stocks with a rating of 80 or higher
Twitter stock is currently not a buy, and no discernible pattern has emerged to suggest a new buy point. However, the stock recently moved above its 200- day and 50-day moving average, both positive signals.
For more top stocks and stocks approaching buy points, check out these IBD Stock Lists, This includes Stocks Near Buy Zones. To see the current stock market trend, check out IBD's signature daily analysis, The Big Picture.
You'll also find alerts to warning signs and sell signals that show when to take your profits or cut short any losses. And, you'll discover if the current stock market trend is conducive to buying stocks, or if it's an environment where you want to take defensive action and sell.
It has been a troubled year so far for social media titan Twitter (TWTR). The company is in the middle of a theatrical lawsuit with Tesla CEO Elon Musk, who agreed to buy the social media company for $54.20 per share in April. The famed entrepreneur has since tried to withdraw from the deal over concerns that Twitter withheld important information regarding spam accounts. As of this writing, the stock trades at roughly $40 per share and is down about 10% year to date.
Management had a variety of excuses for the quarterly performance. In addition to uncertainty linked to the Musk deal, management mentioned the softness in advertising spend as a result of the current economic environment. The latter should have come as no surprise to investors. After all, we've witnessed social media peers Meta Platforms and Snap tackle the same problem recently. On average, Wall Street analysts now forecast Twitter's 2022 top line to grow just 2.3% year over year to $5.19 billion. Next year, they expect its revenue to climb 13.3%. However, in light of the ongoing macroeconomic conditions, investors should take those estimates with a grain of salt.
At the moment, the social media stock has a price-to-sales multiple of 6.1, which is near three-year lows. It seems as though the volatility in Twitter stock will continue until the Musk situation is resolved and macro headwinds sort out. I'd recommend hanging back and waiting for the digital advertising market to settle into growth again and for the legal battle with Musk to come to an end before deciding whether to buy shares. I don't think it's wise to buy a stake in Twitter until its long-term picture becomes clearer. There are far better investment options available in today's market.
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You should be able to buy US shares through most brokerage accounts, but be aware that, unlike local shares, you will not be entitled to a franking credit, because the US does not share our dividend imputation system.
On 19 July, Twitter secured an expedited trial date scheduled for 17 October, which should have resulted in a ruling on whether or not Musk would be required by the courts to go ahead with the acquisition.
The price trend came under pressure as investors questioned how the company could increase revenue from its millions of users, with further bearish sentiment coming from the broader sell-off in technology stocks so far in 2022.
TWTR stock price spiked from $38.69 a share at the end of March to $50.98 on 5 April after Musk bought his stake in the company. It dropped to $44.48 on 12 April but rallied again and reached $51.70 on 25 April, when Musk made his acquisition offer.
The share price ticked back above $40 at the end of May, but doubts about the deal continued. The stock dropped by more than 5% to close at $36.81 on 8 July, a response linked to news that Musk had officially terminated his plans to acquire the company.
The analysts pointed out that Musk bought into the company at a time when its stock was traded down by around 40% from the trailing 12-month period, at around five times its revenue estimate. At the time Truist had a Twitter stock price target of $50 a share.
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Since this past Spring, Elon Musk has been trying to purchase Twitter, changing the company from a publicly traded company to a privately owned company. That deal has been done. As of Nov. 8, the company was delisted from the New York Stock Exchange. If you own stock in the company, you will want to know what happens to your Twitter shares. We cover that here. You can also work with a financial advisor to analyze how your portfolio is impacted or to help you create a new plan for your investments moving forward.
In May, when Musk said the deal was on \"temporary hold\" over bot concerns, Dan Ives, a managing director of equity research at Wedbush, an investment firm, told ABC News the grievance could serve as a pretext for Musk to renegotiate or abandon the deal amid a market downturn that had proven especially pronounced for tech stocks. 041b061a72