Twitter Saga Continues: The Return of the Volatility

Social networking company Twitter, Inc. (NYSE: TWTR) remains in the headlines after Tesla (NASDAQ: TSLA) CEO Elon Musk eyed it for a hostile takeover. Shares of Twitter are trending upward in the Wednesday pre-market session.

After disclosing a 9.2% stake in the company this April, Musk proposed to buy Twitter for $43 billion.

Following the proposal, Twitter responded with a ‘poison pill’ – a survival strategy in the event of an unwelcome takeover. Moreover, rumors are circling in the market that private equity firm Thoma Bravo and the investment management firm Apollo Global Management, Inc. (APO) could be prospective bidders to buy Twitter.

Despite such uncertainty about the survival of the firm, individual investors and options traders are piling their portfolios with Twitter stock. Shares of Twitter sparked by 27% on April 4, following the disclosure of Musk’s stake. Swaying wildly, it recorded a 7.5% jump this Monday, with a 4.7% drop to $46.16 at Tuesday’s close. Now, Musk is planning of making a tender offer of $54.20 per share for the social media company.

It seems that ongoing jitters around the stock will keep volatility high till Twitter’s Board reach a conclusion.

Wall Street’s Take

Recently, Rosenblatt Securities analyst Barton Crockett initiated coverage of Twitter with a Hold rating and a price target of $48 (3.99% upside potential).

Overall, the stock has a Hold consensus rating based on five Buys, 22 Holds, and three Sells. The average Twitter stock forecast of $45.84 implies that shares are almost fully valued at current levels.

News Sentiment

News Sentiment for Twitter is currently Neutral based on 487 articles over the past seven days. 67% of the articles on TWTR have a Bullish sentiment, compared to a sector average of 61%, while 33% are Bearish, compared to a sector average of 39%.

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