Twitter may want to close Musk deal before earnings report: analysts
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Elon Musk, founder of SpaceX, reacts to a news conference following the launch of the SpaceX Falcon 9 rocket carrying the Crew Dragon spacecraft. The Falcon 9 launched on March 2nd from Cape Canaveral’s Kennedy Space Center.
Mike Blake | Reuters
TwitterIt is possible to conclude a merger deal. Elon MuskAccording to analysts, the earnings report for Q1 will be out on Thursday.
According to reports, the social media giant is nearing a dealThe billionaire TeslaSpaceX CEO. According to reports, a deal could be made as early as Monday. BloombergAnd ReutersHowever, it is still possible for it to fail.
According to expectations, the company will provide an update when it releases its most recent financial results. A disappointing quarter may be enough to encourage Musk to sign a contract.
Gordon Haskett stated in Monday’s note that locking up deals today and tomorrow can sound appealing to people who know they have bad news. Musk offering $54.20 per shareWhile the stock traded just over $50 Monday morning,
CNBC heard Monday from Dan Ives of Wedbush, an analyst at the company. Dan said advertising models were slowing down and continued challenges for subscribers. KeyBanc stated in an April 14 letter that the macro environment can have a negative impact on performance. Due to war in Ukraine, the company banned advertising to Russia and Ukraine. Any softening of Europe’s ad spending may also impact second quarter projections according to MKM Partners, which released a note earlier in this month.
Ives stated in a Sunday letter that “Twitter will report earnings this week, which are likely not to be smiles and rainbows” adding further pressure on company regarding high-stakes poker.
Jim Cramer of CNBC agreed and said that the company doesn’t have a chance to make a profit in quarters. Cramer stated that he thinks they “almost have to” accept the deal on CNBC’s “The View.”Squawk on the Street.”
A company goal was set to achieve an aggressive, internal goal 315 million monetizable daily active usersBy 2023, and at minimum to double its annual revenues in the following year. Loop Capital released a Monday note stating that Wall Street is skeptical of this target for growth.
This makes it difficult for Musk’s board to assert that TWTR has a long-term, risk-adjusted and fundamental value significantly greater than Musk’s present offer.
Musk, a prolific Twitter user, argues that the company must be privatized so it can become a free-speech forum.
Twitter refused to comment Monday on a possible deal.
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