Twitter goes down for the seventh day since Elon Musk revealed his involvement

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May 16, 2022 | 3:55 p.m.

The actions of Twitter fell this Monday, wiping out all the gains they had made since Elon Musk revealed his stake on the social media platform.

At the close of the market, shares of the San Francisco, California-based company fell 8.18%, at $37.39marking a seven-day bear streak, a trend not seen since December 20, 2021, according to data from invest.com.

Also, this was the lowest closing price since the $39.31 as of April 1l, the last trading session before Musk revealed his 9% stake in the company.

Musk, who is an avid Twitter user with more than 93 million followersmade an offer last month to take the company private for $54.20 a share.

But the uncertainty around the deal, fueled in part by Musk’s comments, has left shares trading far below below the price offer amid doubts about whether the acquisition will be completed.

It may interest you: What is an OPA? The method Elon Musk used to buy Twitter

stocks down

Stocks have plunged into a bearish streak, after Musk said a viable deal from Twitter is not ruled out at a lower price.

The gap between Musk’s purchase price and market value, an indicator of confidence in whether the deal will close, widened to reach a new record of 16.62 dollars this Monday.

Meanwhile, the latest Twitter stock sell-off was triggered last Friday, after Musk took to the platform to claim his offer was ‘temporarily on hold‘ to get data on the number of fake accounts on the social media platform.

He also said he was “still committed” to the deal. Given this, the stock closed with a fall of 9.7% last Fridayits worst session since October 27.

Read more: Twitter accuses Elon Musk of violating confidentiality agreement

Twitter CEO Defends Count of Spam Accounts After Musk Criticism

Meanwhile, the CEO of Twitter, Parag Agrawalsent out a series of tweets Monday detailing the company’s efforts to identify and remove spam accounts and said outside estimates are not possible.

Agrawal said that Twitter’s estimate, which has been maintained same since 2013may not be reproduced externally given the need to use public and private information to determine whether an account is spam.

Shortly after his tweets, Musk told a private conference in Miami that he suspects the bots – or automated accounts – represent among the twenty% and 25% of users, according to tweets from attendees.

“How do advertisers know what they are getting for their money? This is critical to the financial health of Twitter,” the richest man on the planet replied in a tweet.

With information from Bloomberg and Reuters

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