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Is It Too Late to Sell Your Twitter Stock?
What will poor Donald Trump do at 3am if there is no Twitter? This horrific though comes to mind after reading a Fortune article about how Twitter’s share price is plummeting.
The word “roller-coaster” doesn’t even begin to describe the ride that Twitter shareholders have been on so far this week-and it’s not over yet by a long shot.
First, the company’s share price price TWTR -19.38% zoomed higher early in the week on reports that the company could be a takeover target for several large tech and media companies, including Google, Disney, and Salesforce. But late Wednesday, the stock collapsed after reports that poured cold water on that initial enthusiasm.
After its IPO in 2013 Twitter’s market cap was $48 billion. After rumors of a takeover bid this week Twitter’s market cap made it back up to $17 billion, barely a third more that it was after the IPO. Is it too late to sell your Twitter stock or is the stock likely to fall even more?
Comparisons to Yahoo
A lot of the recent strength of Twitter stock has come from rumors of takeover bids. This is all too reminiscent of Yahoo during its decline. What is of value to other companies is Twitter’s huge amount of data on social behavior. However, Google which seemed to be the best fit for a takeover already has a partnership with Twitter whereby it can take advantage of Twitter’s data. Market Watch writes about how deep Twitter’s slide could get if no one steps in to bail it out.