Who was going to tell Twitter five months ago that to its already numerous problems in the market would be added the interest of the richest man in the world to buy the company he founded on March 21, 2006, just 16 years ago by Jack Dorsey.
And the pernicious effect on its price is of such caliber, with falls of 11.3% since on April 25 Elon Musk presented a takeover bid for the company worth 43,394 million dollars, after acquiring a stake is of such caliber , that their decreases in that succinct period double the annual ones.
In its stock chart we see that Twitter has gained almost 4% in the last five trading days and has clearly improved its expectations in the last month with a rebound that exceeds 6.5% for the stock. In the quarter the falls exceed 16.3% and, so far this year, the cut is 5.39%. Although it should be noted that their year-on-year decreases exceed 40%.
The case is like this right now, deferred until October and twice in court. Twitter has sued Elon Musk for withdrawing his offer to buy that almost 44,000 million dollars on the company. It will last, as stipulated by a judge in the US state of Delaware, for 5 days and will begin on October 17, in an accelerated version, as requested by Twitter’s lawyers, compared to 2023 that Musk’s legal team wanted.
And then, the richest man in the world and head of Tesla and Space X, has filed a counterclaim, on July 29, intensifying the conflict, but yes, nothing is known about it , because the details remain secret for the great public. He, yes, it has transpired that he could request compensation of 33 million dollars for the expenses caused by the failed operation.
Before on the table will be the vote of the shareholders of Twitter so that they pronounce on the convenience of the operation, now erased from the map. It will be on September 13.
With all this on the table, problems rain down on Twitter. This has happened in the presentation of its quarterly accounts in which the company has not met what the market expected in its second quarter of the year. Twitter, in fact, has charged the ink in the drop in income to the headwinds of digital advertising and the uncertainty created by the billionaire’s failed purchase option. And of course without guides waiting for the judicial dispute to be resolved.
As for recommendations, from TipRanks we see that of the 18 analysts who follow the heat, only 2 opt to buy their shares and 16 to keep them in their portfolio. For its part, in terms of the target price, it ranges between a maximum of 54.20 dollars per share and a minimum of 22 dollars per share , which leaves the average PO at around 39.89 dollars, almost 2.5% below its market price.
From Cowen they drastically reduce their target price. In fact, it is the firm that places its target price at its lowest level in the market. It brings it down to $22 from the previous $38 . In any case, there are few changes made by analysts waiting for events and due to another factor, because the traditional call by managers was not made on this occasion due to the particular circumstances surrounding the value.