Twitter Inc (NYSE: TWTR)
Twitter has had a rough time in the market as of late. With the user growth issue on the forefront, the company has finally decided to put itself up for sale. However, it seemed like all of the larger bidders have backed out of the auction. Nonetheless, more news with regard to the auction is leading to today’s gains. Below, we’ll talk about what we’re seeing from the stock, why, and what we can expect to see from TWTR ahead.
TWTR Hits The Ground Running
As mentioned above, Twitter is having a strong day in the market today – a much needed one after recent declines. Nonetheless, today, the stock is well into the green. At the moment (9:40), TWTR is trading at $18.24 per share after a gain of $0.22 per share (1.19%) thus far today.
Why We’re Seeing The Gains
As soon as the CNA Finance team noticed that TWTR was spiking, we started to dig to see what was going on. It didn’t take long to dig up the cause for the gains. At the moment, rumors are spreading that the company is ready to field its final round of offers to acquire the company.
The hope among Twitter investors is that a strong offer will come down the line, and the acquisition will likely happen. While there has been no confirmation, the rumor suggests that Twitter’s offers are in the low $20 billion range.
What We Can Expect To See Ahead
If offers come in at $20 billion, it will offer a strong premium on the stock; but I don’t believe that to be the case. At the end of the day, the larger bidders have backed out for good reason, leaving the scraps for the little guys. The bidders left in the auction likely won’t make an offer in the $20 billion range. With that said, I’m expecting this spike on TWTR, like so many we’ve seen before, to be short-lived!
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