Elon Musk’s tweet ‘temporarily on hold’ sends Twitter stock plunging

Twitter Inc.’s stock dropped on Friday after Elon Musk said he was putting the proposal to buy the social media company “temporarily on hold” as he conducts due diligence on false accounts.

TWTR, -2.19% fell 16.1% in premarket trading, putting it on track to open at its lowest price since March 25 during regular trading hours. That was before Musk revealed he had purchased a 9.2% stake in Twitter.

Musk, the “Technoking” and CEO of electric vehicle industry leader Tesla Inc. TSLA, -0.82%, announced the hold through Twitter:

The tweet comes a day after Twitter announced the departure of two executives ahead of Musk’s takeover, as well as a halt to most hiring plans.

Musk revealed his Twitter holding on April 4 and then said on April 14 that he was making an unsolicited bid for the company. Musk agreed to buy Twitter for $54.20 per share on April 25.

The closest Twitter’s stock has been to closing at the $54.20 bid price since Musk initiated the bid on April 25, when it ended at $51.70.

The stock had plummeted 10.5% in a five-day losing skid prior to Thursday’s selloff.

Meanwhile, Tesla’s stock rose 5.6% in premarket trade, after declining since Musk revealed his Twitter holding, on fears that he would have to sell some Tesla stock to fund the buyout and that the agreement would distract him from running the EV maker.

Tesla’s stock had dropped 36.4% since Musk revealed his Twitter investment on April 4th.

Through Thursday, Twitter shares had gained 4.3% year to date, compared to 31.1% for Tesla and 17.5% for the S&P 500 index SPX, -0.13%.

 

8 Responses

  1. I am very impressed with Mr Musk, since he’s allowing President TRUMP to advise him, I do wish him all business successes

    past present & future

    🥰CHRISTrumpOwens and all our US TRUMPlican Lawmakers successfully US 2022-2036 Reelected Landslide
    Amen & Amen🥰

  2. All I can say about twitter is to bad the stocks are not valued at.000002 cents per hundred shares,I would be pleased it twitter and face book along wit tic toc would dissapear for ever,

  3. I am a 67 year old COUNTRY BUMKIN what ever that means ??? I have only had stock once in my life time. It was forced through union of machinist an steel workers. Was given so many shares for years with company instead of hourly wage increase. 1972 was a epic time. For our area central PA. $5.72 starting wage was the cats MEWOW ! But company stock at that time was ???? So instead of hard cash we got stocked up so to say. Never had stock before or since….. But as I said before : stock market is gambling, nothing more or less. Well I will say beginner’s LUCK was All the way to the BANK and then some. Always good advice to cash in when head of the GAME. Cards .Stock ,interest rate. Never play with money you can not afford to loose!!! Even on a sure deal, stock or bet. I have NO! sympathy for cry BABY LOOSERS !!!!! The get RICH QUICK mentality has been since creation. The down fall of the world an many destroyed families. I will make a clear Fact:: I love to play Cards for MONEY. I am probably a HIPOCRIT by Rights , But I have great luck or special star. I have blessed…. If wondering it PA. Rail Road stock.

  4. Twitter was just a propaganda arm of the democRAT party. Now it’s been exposed for all the world to see. I bet the stock falls so low that no one will want it. The only thing proping it up is Musk’s buyout.

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