Social media platform Twitter (NYSE: TWTR) The stock had a tumultuous year as Tesla (NASDAQ:TSLA) CEO Elon Musk withdrew his $54.20 per share, $44 billion takeover bid. There is a lot of speculation that Musk might still be interested in the social media giant, but at a cheaper price. The company sued Musk over the tender offer which is scheduled for a five-day trial beginning October 17, 2022. Elon Musk also countersued Twitter. Twitter claims to have spent $33 million on transaction fees and is still set to hold a shareholder vote on September 13, 2022. Musk’s offer was able to keep Twitter’s share price at the rise and relatively unscathed only (-2.5%) over the year. Meanwhile, peers like Snap (NASDAQ:SNAP) and Pinterest (NASDAQ:PINS) saw their stocks demolished by (-78%) and (-46%), respectively in the tech bear market. Twitter’s Q2 2022 revenue report was mostly negative, but the silver lining was the 16.6% rise in monetizable daily active users (mDAUs) to 237.8 million. Due to the impending acquisition of Twitter by an affiliate of Elon Musk, the company declined to host a lucrative conference call, letter to shareholders or provide forward-looking guidance. Cautious investors may consider opportunistic withdrawals to gain exposure on this popular social media platform.
Publication of results for the fourth quarter of fiscal 2021
On July 22, 2022, Twitter released its second quarter fiscal 2022 results for the quarter ending June 2022. The company reported an adjusted earnings per share (EPS) loss of (-$0.08) excluding one-time items. compared to analyst consensus estimates. for a profit of $0.14, missing estimates of (-$0.22). Revenue fell (-1.2%) year-over-year (YOY) to $1.18 billion, missing analyst estimates for $1.34 billion. The average number of monetizable daily active users (mDAUs) increased 16.6% year-over-year to 237.8 million. The average US mDAU increased by 14.2% to 41.5 million and the international mDAU increased by 17% to 196.3 million.
There was no conference call or forward guidance. The company issued a statement: “As announced on April 25, 2022, we have entered into a merger agreement, pursuant to which Twitter has agreed to be acquired by an entity wholly owned by Elon Musk, for $54.20 per cash share. transaction, Twitter will become a private company. On July 8, 2022, representatives for Mr. Musk delivered notice to terminate the merger agreement. Twitter believes Mr. Musk’s alleged termination is invalid and abusive, and the merger agreement remains in effect. effect. On July 12, 2022, Twitter filed a lawsuit against Mr. Musk and certain of his affiliates to compel them to specifically perform their obligations under the merger agreement and complete the closing in accordance with the terms of the merger agreement. merger. On July 19, 2022, Twitter’s request for an expedited trial was granted, and the trial is scheduled for October 2022. Adoption of the merger agreement by our shareholders is the only remaining regulatory approval or condition to complete the merger. under the merger agreement. The exact timing of the completion of the merger, if any, cannot be predicted as the merger is subject to ongoing litigation, the adoption of the merger agreement by our shareholders and the satisfaction of closing conditions. remaining.”
Elon Musk terminated his acquisition agreement with Twitter mainly on the grounds that the company was lax in calculating fake accounts. However, Twitters claims that Musk had no interest in understanding Twitter’s sampling process as provided to him. The company says no materially misrepresentations were provided to Musk. Twitter is expected to begin an expedited trial on October 17, 2022, to force Musk to follow through on the original merger deal at $54.20 per share. The investor can buy the rumor to sell the news.
TWTR Opportunistic Withdrawal Levels
Using the rifle charts on the weekly and daily time frames provides an accurate view of the landscape playing field for the TWTR stock. The weekly Rifle chart reached the $32.42 Fibonacci (fib) level. The weekly 5-period moving average (MA) is sloping at $38.85 towards the 15-period MA at $41.17. The weekly 200-period MA stands at $42.61 and the 50-period MA at $45.73. The lower Bollinger Bands (BB) weekly are found at $30.59 and the upper BBs at $51.86. The weekly low in the market structure (MSL) was triggered on the breakout of $39.05. The daily Rifles chart triggered a breakout from the PUPs with a rising 5-period MA at $40.19 followed by support in the 15-period MA at 38.35 overlapping the 50-period MA at $38.45 . The daily 200-period MA resistance lies at $42.61. The weekly stochastic triggered a mini upper band pup through the 90 band. Cautious investors can watch for opportunistic pullbacks at the $39.25, $37.33, $35.80, $35.05, $34.00, $32.42, $31.30 and $29.76 levels. . The upward trajectories range from the $45.56 fib to the $58.10 fib level.
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