Should Indians Invest in Twitter Shares after The Elon Musk Acquisition

After much anticipation, Twitter was bought by Elon Musk for $44 billion. The news grabbed a lot of attention for the users as well for those who bought stocks and shares. It is the third-biggest deal made on tech so far.

The first huge purchase was the deal of Xilinx worth 50 billion dollars in 2022 and the second one was the Dell EMC deal in the year 2016 worth 67 billion dollars. Of course, the Twitter shares were hit after the man bought the microblogging site. The stock slid 3.9 per cent and closed at $49.68.

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Analysis of Twitter :

Twitter is a publicly-traded company. There are more than a million retail investors who hold shares of the company. Indian individual investors can use global investing platforms like Vested Finance, INDmoney, Stockal or Winvesta, who would like to buy Twitter shares.

Lately, NSE International Exchange (NSE IFSC), which is National Stock Exchange’s wholly-owned subsidiary, also announced trading in US stocks which will be facilitated through the NSE IFSC platform.

With an easy investment process and at a low cost, interestingly, the Indian investors got an additional investment opportunity !! Presently, the route to investing in US stocks is inconvenient and expensive.

So are you planning to invest in the shares of Twitter after Elon Musk’s acquisition, as the hoopla around global stock investment is growing and growing!!

Here, Business Advisor, Strategist and Renowned Business Transformation Leader Hirav Shah suggesting 3 options

Hirav Shah’s 3 Options

1.Option 1- At around $49, the Twitter stock is trading, which is near to the price of $54.2 per share, which is the offer price. Since April 22, the stock has already gained over 35 percent.

In 2022, the deal is supposed to conclude and the company will go private, after it concludes.

Rather than trying to capture the arbitrage gain now, investors should look at booking profits in the stock. The valuation at which the stock is presently trading is at a substantial premium, the company is unable to deliver growth of revenue, over the past couple of years, also, from other investors which might impact the price, we might not see any more takeover bids…

And yes, for newer investors, it is not the right time to enter this stock.

2. Option 2- Presently, Twitter stock is witnessing profit booking. The news of its acquisition will certainly have a positive impact on the stock. Investors could buy on dips now and hold them for long-term investment.

3. Option 3- If the price remains much below the tender price, then you are at profit, whether you would like to sell or not, the shares will get executed at this price on the last day, and you will be receiving an equivalent cash benefit. Till the callout takes place, Indian investors can hold this.

Final Thoughts:

“Obviously, Twitter has topped the user-growth expectations following the World’s Richest Man’s deal agreement, but before investing in Twitter shares, weigh all options and also use your mind and don’t get floored away”-Concludes Hirav Shah.

Frequently Asked Questions

Did Elon Musk take over Twitter?

On April 14, 2022, Elon Musk proposed to purchase Twitter, Inc. for $43 billion, after previously acquiring 9.1 percent of Twitter’s stock for $2.64 billion, becoming its largest shareholder.