Here's What Twitter Stock Might Be Saying About the Economy
Short-form social media company Twitter (NYSE: TWTR) is currently embroiled in a bitter dispute with Elon Musk, the innovating billionaire and head of electric vehicle maker Tesla. Musk offered to buy Twitter for $54.20 per share back in April, but he has since tried to pull out of the deal citing a lack of transparency and concerns about its user base.
The parties are fighting it out in court, but back at Twitter HQ, management faces perhaps a more pressing challenge: The company is experiencing a slowdown. Consumers and businesses are grappling with high inflation and rising interest rates, which means there's far less advertising spending happening, and that's the main driver of Twitter's revenue.
Setting aside the Musk controversy, here's what Twitter's recent second-quarter financial results suggest about the economy, and why investors might want to avoid owning the company's stock.
Source Fool.com
