- Summary:
- Twitter stock price is down by 8 per cent this week. The drop is a continuation of the bearish trend we have seen in the past few weeks.
The Twitter stock price is down by 8 per cent this week. The drop is a continuation of the bearish trend we have seen in the past few weeks. For the past month, the price of Twitter has dropped by 20 per cent after it was revealed that Elon Musk, the Tesla and SpaceX CEO, was in the process of acquiring the company.
However, in the past few weeks, the acquisition process has become complicated, with Musk stating that the deal cannot move forward until more information about the amount of spam and fake accounts on the platform is released. Despite careful explanation by the Twitter CEO Parag Agrawal, Mus has continued to argue that there is a likelihood that 20 per cent of the platform’s users are fake.
The back and fourth Spat between Musk and Twitter has put the $44 billion Twitter takeover deal on hold. Twitter continues to insist that, out of the $229 million daily active users, the false or spam accounts only accounted for less than 5 per cent. However, on his Twitter account, Musk has indicated that Twitter’s CEO has publicly refused to show proof of Twitter’s less than 5 per cent bots claims.
As the $44 billion deals stalls, the shares have continued to plummet below the price of $54.2 that Elon Musk was willing to pay when he first made the offer on April 14. Today, Twitter shares are selling at $37.29.
Twitter Stock Price Prediction
For the next few weeks, much of what happens with Twitter price will highly depend on the $44 billion deal Musk has proposed. Since making his bid, Twitter stocks have continued to plummet, dropping by 30 per cent since April 5.
Suppose Musk, for whatever reason, decides not to go through with the Twitter purchase. In that case, I expect the markets to start behaving normally, with other factors besides the deal affecting price movements. My Twitter Stock price prediction should the deal fail, expect the prices to start recovering from the recent downfall. I also expect investors to start coming into the platform, which is also likely to fuel the price growth of Twitter. As a result, there is a high likelihood we will see prices rise to the pre-musk bid of $54.
However, should Musk go through with the deal, then there is a high likelihood of Twitter being taken private. This will mean traders and investors will not be able to invest in the platform as Musk will solely own it.
Twitter Daily Chart
