The market is abuzz since Twitter Inc.’s (NYSE: TWTR) CEO, Parag Agarwal, informed the company’s employees that Elon Musk, the likely owner of the company, will be present at the all-hands meeting that is to be held on June 16 (Thursday).
This information was communicated through an email on Monday. The fact that Musk is ready to answer questions from the employees has grabbed many eyeballs. Speculations are now rife about the nature of questions and the present status of the deal.
Shares of Twitter lost 5% to close at $37.03 on Monday. In the extended trading session, the stock regained momentum and rose 1.3%.
In April, the CEO of Tesla, Inc. (NASDAQ: TSLA) and SpaceX expressed his desire to take over the social networking company in a cash deal worth $44 billion. The deal values each share of Twitter at $54.20 cash.
Notably, Musk already holds a 9.2% stake in Twitter. Post the buyout, he plans to make Twitter a privately owned company.
The deal, which is expected to close in 2022, hit rough waters after Elon Musk accused Twitter of hiding the number of fake accounts on its platform. The billionaire also threatened to walk away from the deal on June 6.
Stock Rating
On TipRanks, Twitter has a Hold consensus rating based on one Buy and 25 Holds. TWTR’s average price target of $51.72 suggests 39.67% upside from current levels. Over the past year, shares of Twitter have lost 39.1%.
A few days back, Thomas Champion of Piper Sandler maintained a Hold rating on TWTR while increasing the price target to $54.20 (46.37% upside potential) from $51.50. The analyst upped the price target to account for the pending buyout deal with Elon Musk.
Website Traffic
According to TipRanks, the footfall on TWTR’s website increased 2.96% month-over-month in May 2022. Further, the number of visits to the company’s website has grown 50.10% so far this year. However, the website traffic is down 7.88% quarter-to-date. This mixed trend reflects uncertainties surrounding the buyout deal.
Conclusion
Though uncertainties related to the completion of the deal are still there, the initiative by Elon Musk to address Twitter employees and answer their questions is welcoming. It is likely that the meeting on Thursday will have some vital information about the success of the pending deal.
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What Is New with the Pending Twitter-Elon Musk Deal? - TipRanks
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