Old coots be smart!
Posted on 07/12/2022 7:40:20 AM PDT by Macky Cracklins
Twitter shares plunged Monday in the first day of trading since Elon Musk abandoned his $44 billion agreement to buy the company – and one tech industry analyst warned of a potentially disastrous long-term scenario for the embattled social media firm.
Twitter’s stock sank 11% as investors reacted to the exit.
Musk’s move that sets up a lengthy court battle likely to weigh on company shares for months or years to come and added to the challenges facing CEO Parag Agrawal, according to Wedbush analyst Daniel Ives.
(Excerpt) Read more at nypost.com ...
I don’t think musk is unpredictable, he is simply a businessman making sure that his perspective purchase is honestly presented. People need to relax and then they’ll run its course, until the last signature and the last dollar are exchanged.
Elon knows everything...... he’s Elon
Paraphrasing Jessee Stone who knows everything, he’s chief of police
It is looking, more and more, as if Twitter is an organization captured by the corrupt intelligence agencies of the U.S. government. Twitter is, itself, a disinformation platform manipulating and censoring the American people.
Its mission appears to be wholesale fraud.
Hopefully, Elon Musk is wealthy enough to expose all of Twitter’s lies.
Twitter stepped on its tie. Stupid greedy people.
I wouldn’t cheer this on since Bezos or another Marxist will scoop up Twitter now and they will go into full Stalinist mode.
Which is precisely why it will never go to court. Twitter is bluffing. The last place they want to be is court under oath where their entire enterprise will be subject to discovery by Musk's legal team. Musk won't have to pay them one red cent for bailing out if he proves they were misrepresenting what they were trying to sell, Twitter will be smoking ruins and Musk might even petition the court to force Twitter to pay his legal fees. (wouldn't that be grand?) Twitter has nowhere but down to go from here.
“Twitter is valued at 160/1 price/earnings. They don’t generate much revenue, and they are not profitable.”
A positive P/E as you posted indicates they are profitable!
Five billion a year in revenue is not pocket change ...
“if it is found that Twitter has been lying about the number of real accounts they have to advertisers, then the advertisers might have a cause of action based on fraud.”
There may be some hope with your observation.
I think Elon, or even a potato could make Twitter profitable.
Hmmm...That kind of sounds like "America for Americans".
Someone gonna get canceled!
Old coots be smart!
No you misunderstand. Take their revenue and multiply it times 160. That is it’s stock market valuation. Most stocks are like 20/1.
Twitter is like 150 million in revenue. multiplied times 160 is 24 billion.
it’s wildly overpriced.
Twitter’s management wants Musk to by at $54 what is currently valued at $34. Sweet deal if you can arrange it. Musk is saying no, you lied to me about the user base, which is apparently the case. It becomes a question of whether Twitter is willing to open the books enough for arbitration; if they refuse to do that, Musk wins. If they do and the numbers turn out to be grossly inflated, Musk wins. The court could, of course, say no, the terms of sale are such that you have to buy a pig in a poke, which is contrary to usual practice to say the least. So, OK, Musk buys at $54...and the shareholders, of which he is the second largest, take a nice profit and the board, which owns very little stock, gets fired. Musk still ends up with the company and if he can get the stock price to recover, he wins. I like his odds.
Thanks. I will save your reply to give to my wife, when she questions how smart I am!
You might consider adding “arrogant” to your good list.
It is like children run Twitter. They have no understanding of what it means to be publicly traded. It’s like they are screaming “we are exempt from rules you big meanie!!”
They aren’t.
They had to give Musk this information and he was going to get it one way or the other. If they had given it in the confines of the deal due diligence, even if he dropped his price it was still more than the company was worth.
Instead, they will lose the deal, face the wrath of the shareholder and give up the information anyway in discovery.
Go woke, go broke indeed.
I officially retract my assessment of your intelligence.
Dang fool.
“No you misunderstand. Take their revenue and multiply it times 160. “
I understand, you don’t!
It is NOT price / revenue. It is price / earnings!
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