Twitter Board Now In Talks With Musk as He Secures $46B of Funding
"The Wall Street Journal said Twitter is in 'advanced' talks with Musk, adding a deal could me made public as early as this week. Bloomberg reported the deal could be announced as early as today.
Reuters reported Sunday that while Twitter has not yet decided to accept Musk's bid, which both the company and some of its major shareholders have derided as too low, it is nonetheless ready to engage on both the merits of the proposed takeover and any legal entanglements from Musk's many run-ins with the SEC in his role as Tesla boss.
Twitter shares were marked 3.6% higher in early Monday trading to change hands at $50.70 each." - read more on the Street here
Breaking Thoughts: While the drama and the stock price volatility continue, its clearer now that Musk is serious with funding lined up and the board now having to speak with him.
After Netflix got wiped out last Thursday (down over 30% - $50 Billion!) on a decline in user growth, the Twitter board is likely terrified of a similar situation when Twitter reports its own Q1 later this week.
If they don't try to make a deal with Musk, don't have any other buyers lined up and if the stock falls back to where it was before Musk's investment (or worse) they will be in a world of trouble. Likely facing endless shareholder lawsuits demanding answers for failing to get acquired for $54.20 if the stock falls back to the $30s or even $20s.
Given this real possibility, the Board -out of its own preservation if nothing else- seems far more likely to take an offer that's already on the table.
Big Tech Earnings for Apple, Amazon, Google, Meta, Microsoft
"Stocks have been under consistent pressure in the first four months of the year, driven by several headwinds. Aside from rising inflation, which is at a 40-year high, there are also rising interest rates, supply chain challenges and uncertainty with the overall health of the economy. And it certainly hasn’t helped that the war between Russia and Ukraine adds additional uncertainty about the long-term global growth impact.
The Nasdaq was pressured by another decline in shares of Netflix (NFLX), which has given up almost 40% in three days. The streaming giant spooked the market earlier this week when the company said it lost 200,000 subscribers on a net basis last quarter, when it had expected to add 2.5 million subscribers. The market didn’t take this new too kindly, swiftly wiping out more than $50 billion off the company's market capitalization.
The main question heading into the week is whether this punishment will continue, particularly as Big Tech comes into focus with Apple (AAPL), Amazon (AMZN) and Microsoft (MSFT) slated to announce their results. The guidance they provide for the current quarter and beyond will reveal their level of confidence in navigating supply chain headwinds." - read more on the NASDAQ here
Major Earnings This Week
Monday April 25:
Activision Blizzard (ATVI): Expected Q1 earnings of $0.71 per share
CRISPR Therapeutics (CRSP): Expected Q1 earnings of $-1.94 per share
Spirit Airlines (SAVE): Expected Q1 earnings of $-1.53 per share
Tuesday April 26:
3M (MMM): Expected Q1 earnings of $2.31 per share
Alphabet (GOOG): Expected Q1 earnings of $26.11 per share
Microsoft (MSFT): Expected Q3 earnings of $2.19 per share
NCR (NCR): Expected Q1 earnings of $0.63 per share
Visa (V): Expected Q2 earnings of $1.65 per share
Wednesday April 27:
Celestica (CLS): Expected Q1 earnings of $0.35 per share
CGI (GIB): Expected Q2 earnings of $1.51 per share
Meta Platforms (FB): Expected Q1 earnings of $2.56 per share
Pintrest (PINS): Expected Q1 earnings of $0.03 per share
Qualcomm (QCOM): Expected Q2 earnings of $2.91 per share
Spotify (SPOT): Expected Q1 earnings of $-0.23 per share
Thursday April 28:
Apple (AAPL): Expected Q2 earnings of $1.43 per share
Amazon (AMZN): Expected Q1 earnings of $8.13 per share
Domino's Pizza (DPZ): Expected Q1 earnings of $3.06 per share
Intel (INTC): Expected Q1 earnings of $0.52 per share
Mastercard (MA): Expected Q1 earnings of $2.17 per share
Twitter (TWTR): Expected Q1 earnings of $0.03 per share
Western Digital (WDC): Expected Q3 earnings of $1.48 per share
Friday April 22:
Berkshire Hathaway (BRK.B): Expected Q1 earnings of $2.83 per share
Magna International (MGA): Expected Q1 earnings of $1.12 per share
Major IPOs Expected This Week
None
See you next week!
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The Market News Reel for this week! Get the most important market news & updates for the week ahead! Major headlines, excerpts from news sources are shown above. "Breaking Thoughts" section is purely our opinion.