TWTR Surges on Buyout Rumor

TWTR spiked nearly 20% at today’s open on rumors that a number of companies are putting together a formal buyout offer.

See Bloomberg report for further details:

While this comes at a surprise, we note that the surge in price will make it very costly for the acquirer, possibly even casting doubts in going forward with a bid. We’ve seen crazy companies do crazy things so it wouldn’t be entirely shocking to see a bid price even higher than the current price level. The article goes on in detail about slowing revenue and user growth which we’ve commented on in past posts as our rationale for the bearish sentiment.

We will continue to monitor the Twitter investment trend and search trend with much interest.

Happy Trading!


Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.