Twitter Expects to Prevail in Fight with Elon Musk
July 22, 2022
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There is no doubt that Twitter ($NYSE:TWTR) and Elon Musk are in for a legal battle after Musk’s recent decision to try and terminate the $44 billion deal between the two companies.
However, one of Twitter’s major shareholders, Matt Halbower, is confident that Twitter will come out on top. Halbower believes that Musk is not above the law and that Twitter will prevail in the end. This legal battle could have a significant impact on Twitter’s market value and earnings in the long term, so investors will be watching closely to see how it plays out.
Market Reaction
On Wednesday, Twitter stock opened at $39.6 and closed at $39.6, up by 0.3% from its previous closing price of $39.5. This came after Tesla CEO Elon Musk tweeted that he was taking his company’s Twitter account private. The social media company’s stock was relatively unaffected by Musk’s tweet, showing that investors are not too worried about the potential impact of the Tesla CEO’s actions.
VI Analysis
The company’s fundamentals reflect its long term potential. The fair value of the company’s stock is around $58.8, calculated by VI Line. The company is currently undervalued by 33%.
Summary
Twitter said in a statement on Wednesday that it had reviewed Musk’s tweets and found no violation of its rules. The social media platform has been under pressure in recent months to crack down on abusive and fake accounts. Twitter has been beefing up its efforts to combat fake news and bots, and last week it purged tens of millions of suspicious accounts. The company has also been facing criticism for its handling of hate speech and harassment.
