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Poison Pill Explained: Why Elon Wants to Buy TwitterIn this post, I'll explain the ongoing situation with Twitter; how they're preventing Elon from buying the company out, and my thoughts on why Elon wants Twitter so badly. Twitter's Strategy - Twitter is using a strategy known as the 'poison pill'. - This is one of many defensive strategies that boardrooms can take when they're trying to prevent hostile takeovers. - While the method may vary depending on the deal, the essence of the strategy is simple: make the stock less appealing to the hostile acquirer, and allow opportunities for other shareholders to acquire the stock at a discounted price through the use of call options. - Netflix (NFLX) successfully used this strategy against Carl Icahn in 2012, when he attempted a hostile acquisition of the company, making it difficult for Icahn to acquire more than 10% of the company without approval from the Netflix board. - Luckily for Icahn, he made 20x returns on his investment simply from holding Netflix shares for the three years that he attempted a takeover. - In the case of Elon's acquisition of Twitter, the terms are slightly different. - Elon offered to buy the entire company for $43B, which is a generous offer of $54.20 per share. - Twitter's board however, having seen prices once hover above $70, were not happy with Elon's offer, and asked him to join the board with a 14.9% stake limit - Elon refused. - Twitter emphasized that their poison pill strategy will activate if Elon tries to acquire more than 15% stake in the company, and will remain effective until April 14, 2023. Twitter Shareholders by Size - The Vanguard Group, Inc. 10.3% - Elon Musk 9.2% - Morgan Stanley Investment Management 8.4% - BlackRock Fund Advisors 6.5% - State Street Corp. 4.5% Why Elon Wants to Buy Twitter - My thoughts on why Elon is looking to acquire Twitter is as follows: - The narrative that Elon is pushing as his justification for the purchase is "free speech". - He has been vocal about Twitter's decision to shut down former US president Donald Trump's account. - However, I personally believe that there are deeper layers to this matter than just 'free speech', and 'twitter's untapped potential'. - Tesla currently does not spend a single dime on marketing and advertisement costs. - Elon dissolved the PR department in 2020, and stated that the capital that was previously used for marketing, will now be reinvested back for R&D. - Instead, Elon has been using his twitter account as a channel to promote his businesses - not only Tesla, but also SpaceX, SolarCity, and the Boring Company. - The last time Tesla had a PR department, it spent $70m in marketing and advertisement costs. - So taking that into account, and considering the value that was created by those costs being reinvested back into R&D, Elon has singlehandedly managed to create hundreds of millions of dollars in value through his twitter account. - And the risk of him having his twitter account shut down, due to his potential violation of one of their many policies, is huge. - His acquisition of the company's stake, and taking the company private eliminates this risk for him. - Put into context, it makes more sense: Elon's $43B offer to buy Twitter is equivalent to someone with a net worth of $1m purchasing a G-wagon for their rental car business. Conclusion On one hand, we have Twitter, a company willing to use the poison pill strategy to prevent a hostile acquisition from taking place, and on the other hand, we have Elon Musk, who's trying to take the company private for $43B. I think there are bigger implications to his offer, as we've seen how he was able to connect seemingly unrelated businesses to form a virtuous cycle that would become the pillar of his entire empire. We use electricity generated from SolarCity to power our Tesla cars using solar energy. With the satellites that SpaceX launches, our Tesla cars undergo software updates in real time, and the Boring Company solves traffic jam issues by taking our Teslas through underground tunnels. I'm sure there's room for Twitter to fit into this equation, but I'm not completely sure as to what Elon has on his mind. One thing is for sure: it has more to do with Elon's personal philosophy. If you like this educational post, please make sure to like, and follow for more quality content! If you have any questions or comments, feel free to comment below! :)
NYSE:TWTREducation
by Michael_Wang_Official
11
TWITTER 18th APRIL 2022This analysis is based on market sentiment. Lately, Elon Musk has caused a commotion on social media because he decided to buy Twitter, the richest man offering US $ 43 billion or equivalent to Rp. 618 trillion. Musk's reasons for owning Twitter are not purely for business or financial gain, but Musk reveals the reason is so that Twitter's social media remains a democratic platform. If drawn into the journey of Musk and Twitter, the two are already very close because Musk is a prolific Twitter user. He is also a troll or person who likes to joke on this platform and so far Musk has not arranged the financing to buy Twitter and make it private.
NYSE:TWTRLong
by DNP-FX
4
Twitter - TWTR Technical Analysis - Hold For Now.Using a Weekly chart you can notice that prices have been moving horizontally, not a proper trend. With a daily and 4h chart, a start of an uptrend (Bullish behaviour) might be found. Unfortunately, the bullish trendline can not be considered so it has been tested only 2 times. Best option is to HOLD, as both up and down option are available. This Market, is mainly influenced by Fundamental Option 1 only if the resistance level of 50 USD will be broken Option 2 - testing the amended trendline around 32 - 33 USD and if this level will not be broken it can be a signal of buying Option 3 - Testing the possible trendline at 23.5 USD. If it will not be broken, it can be seen as buying signal.
NYSE:TWTR
by Mauriello
$TWTR rejection sets up move lower to $26-30I know everyone's bullish following the announcement that Elon wants to buy $TWTR, but the chart still doesn't look bullish. The candle last week sharply rejected the $51 level which is the level price action originally broke down from, which now sets up a move lower. I think the most likely scenario from here is that price sweeps the lows. And falls to between $26-30 (possibility it falls lower, but those are the conservative downside targets). In the very short term, I could see the possibility of one more retest of $51 (which I don't think would be likely to break resistance based on the chart). If that happens and rejects yet again, the probability of this playing out increases a lot. Let's see what happens over the coming weeks/months.
NYSE:TWTRShort
by benjihyam
Elon Musk To Buy Twitter (NYSE: $TWTR) @ $54.20 Per Share?! 🐦Twitter, Inc. operates as a platform for public self-expression and conversation in real-time. The company offers Twitter, a platform that allows users to consume, create, distribute, and discover content. It also provides promoted products and services, such as promoted ads and Twitter amplify, follower ads, and Twitter takeover; Tips to directly send small one-time payments on Twitter using various payment methods, including bitcoin; Super Follows, a paid monthly subscription, which includes bonus content, exclusive previews, and perks as a way to support and connect with creators on Twitter; and Ticketed Spaces to support creators on Twitter for their time and effort in hosting, speaking, and moderating the public conversation on Twitter Spaces. In addition, the company offers Twitter Audience platform, an advertising offering that enables advertisers to extend advertising campaigns; Twitter Developer Platform, a platform that enables developers to build tools for people and businesses using its public application programming interface; and paid access to Twitter data for partners with commercial use cases. Twitter, Inc. was founded in 2006 and is based in San Francisco, California.
NYSE:TWTRLong
by RedHotStocks
3
What does Elon Musk want out of his Twitter stake?After being a staunch critic of Twitter for years, Elon Musk has acquired a 9.2% stake in the company for an estimated $2.9 billion in a deal that is widely seen as an attempt to shake things up at the social media platform. Twitter’s stock surged 27% on April 4 following the ownership announcement. Currently the world’s richest person with a net worth of over $270 billion, Musk became the platform’s largest shareholder and landed a seat on Twitter’s board of directors shortly after the ownership disclosure. The appointment would allow the Tesla and SpaceX chief executive officer to pitch ideas like adding an edit button to tweets and advocating free speech. Free speech vision Even before building his stake in Twitter, Musk has long criticized the platform for its restrictive policies. The self-proclaimed “free speech absolutist” in late March put out a controversial free speech poll asking his more than 80 million followers if they believe Twitter adheres to the principle of free speech as a key to “a functioning democracy.” Musk also stressed the importance of the poll, urging his followers to vote carefully. Majority — or 70.4% — of Musk’s followers said “no” to the survey. In a tweet two days after the poll, Musk said that “given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?” Weeks later, Twitter came out with an ownership filing disclosing Musk’s stake. Musk now owns a bigger stake than Twitter founder Jack Dorsey, who still owns just over 2% of the company. Dorsey is known to be pro-censorship. Prior to Dorsey stepping down as CEO in November, Twitter moved to permanently suspend the Twitter account of former US President Donald Trump after the attack on the US Capitol Building on January 6 2021, with Dorsey saying it was “the right decision” for the company. The question now lies on whether Musk will reinstate Trump’s Twitter account. But more than that, the acquisition will make Twitter’s stock more sensitive to tweets by Musk. Market-moving tweets Musk's excessive usage of Twitter triggered warnings, subpoenas and lawsuits by the US Securities and Exchange Commission in recent years. In 2018, he stepped aside as chairman of Tesla as part of a settlement with the SEC and agreed to pay a $20 million fine over past market-moving tweets that affected the carmaker’s stock price. The billionaire’s tweets in mid-March about owning cryptocurrencies Bitcoin, Ethereum or Doge and having no intentions to sell his positions pushed up the market price of these digital tokens. With his position in Twitter, Musk’s criticisms against the microblogging site will likely have an impact on its share price movement. His investment in Twitter provided a lifeline to the company as its shares have fallen to below $40 apiece in recent months. Latest challenge for Twitter After being targeted by activist shareholder Elliott Management for years, leading to Dorsey relinquishing his role as CEO, Twitter will now be up against Musk, who according to New York Times’ Opinion writer Kara Swisher, is an active investor. "Elon Musk doesn’t take a 9.2% interest in a company like Twitter simply for passive income… he was never going to sit on the sidelines of the fight over Twitter,” Swisher said in an opinion piece on Thursday. In a sign of his plan to take on a more active role on Twitter’s board, Musk filed a more detailed Schedule 13D filing with the SEC three days after submitting a Schedule 13G, which is intended for investors that do not plan to engage with the company’s management. A 13D filing makes passive investors transition into activist status. Musk’s exact plans for Twitter remain uncertain, but Twitter’s stock will surely be one to watch in the coming days. Over the past 24 hours, Musk put out more polls including asking his followers whether or not to “convert Twitter SF HQ to homeless shelter since no one shows up anyway.” The Tesla CEO also wants Twitter to remove advertising for subscribers of its Twitter Blue paid subscription service, he said in a tweet on Saturday. The plan is expected to be met with opposition from Twitter’s board as 89.8% of Twitter’s revenue in the fourth quarter of 2021 was from advertising.
NYSE:TWTR
by BlackBull Markets
SPY Analysis 04/10/22 - Daily TimeframeSee below for chart indicators - SPY has been in a bull run since March 14th, with a (so far) retracement beginning the end of March. As of last week, SPY finished in quite the gray area - with many signs of uncertainty in both buyers and sellers. First, it finished above both its 50 ema (445.50) and above its ATH aVWAP (442.50) - using the 50 ema as strong support and barely touching its aVWAP. These are both signs that the bulls haven't given up yet, despite having dropped 4% in the past two weeks. The RSI is also an indication of bullish struggle, with the RSI 50 being a point of heavy support and resistance in the past, the RSI currently sits at 51 - meaning SPY could potentially use this as a point of support. As for the bears, the 9ema acted as a point of strong resistance for SPY this past week, even stronger than the 50ema's support - a bearish signal. We also see a steady decline in Volume, so expect some inflection point and move happening sometime towards the end of middle/ end of April. As for my personal opinion, I feel SPY is headed lower short term after a period of consolidation. Overall economy sentiment is negative for good reason, and there is still much uncertainty for the war in Ukraine. Puts below: 445.50, 442.50 Calls above: 450 Chart Indicators: 50ema (yellow), 9ema (blue), ATH aVWAP (pink) RSI Indicator: RSI MA (yellow) RSI (purple), Supports (green circle), Resistances (red circle)
AMEX:SPYShort
by SJ_CAP
TWTR: Is it a good buy right now? Complete trend analysis!Hello traders and investors! Let’s see how TWTR is doing today, and do a complete trend analysis on it. First, in the 1h chart, it seems we have a Descending Triangle, and it seems TWTR is losing the support at $ 46.87. This might indicate further drop, especially considering it is doing lower highs/lows, and it is below the 21 ema. We have some bearish structures, but since TWTR is so close to this support, there’s still time to react, but it must react quickly in order to avoid a sharper pullback. It is important to mention that in the daily chart the trend is clearly bullish. It has been a while since we are above the 21 ema and doing higher highs/lows. It just happens that it is too stretched right now, thanks to Elon Musk, and the volume is trading at record highs too. In this case, remember: Pullbacks are opportunities to buy. Any correction to the 21 ema would be great, but we must wait for the confirmation in the 1h chart, by losing the $ 46.87. To me, TWTR will fill both gaps (yellow squares), meaning, it has a target at $ 64.73, but it’ll be a though ride, with a lots of ups and downs. In the weekly chart, we see that the situation is not that easy for TWTR. Even with all the volatility, TWTR just did a very technical movement, and it jumped to hit the 61.8% retracement (with an unbelievable precision), and now we see a Shooting Star candlestick pattern. This is going to be a strong resistance for TWTR, therefore, we must see more bullish structures in the daily chart. So far, everything is going according to the plan, but we must keep our eyes open. I’ll keep you guys updated on this, so, remember to follow me to not miss any of my daily analyses!
NYSE:TWTR
by Nathan_The_Finance_Hydra
5
TWTR: Buy Zone is 38-41Twitter just completed an impressive 5-wave move off the low. What happens next is important. If we can get a nice ABC pullback to the .500 - .618 fibonacci retracement ($38-41) followed by a break above $55, it will signal that TWTR is in the heart of its W-3 with preliminary price targets of $85-$95. Those who are more risk taking may want to purchase at 38-41, those who are more risk averse may want to wait until the breakout above 55. Musk has generated a lot of excitement around twitter and twitter is heavily used during elections, which 2022 is a midterm election year. I currently do not have a position in twitter, but I will buy if we reach my buying zone.
NYSE:TWTRShort
by TomDaSpankEngine