Why Twitter Stock Got Crushed Today
So the Elon Musk-Twitter (NYSE: TWTR) deal is apparently moot, and the company's stock suffered for it on Monday. On Friday afternoon, the Tesla (NASDAQ: TSLA) CEO disclosed in a regulatory filing that he aimed to withdraw from the arrangement, and investors promptly traded the stock down by more than 11% the following trading day.
Tech stocks have been out of favor with investors lately, and Musk's attempted retreat isn't helping boost sentiment on Twitter. While many correctly speculated that the mercurial Tesla leader wouldn't go through with his $44 billion play for the micro-messaging company, others clearly believed in it. That's why the company's share price spiked when news of the offer hit the headlines in late April.
Musk's pull-out is ostensibly happening because the company didn't provide enough information for his side to "make an independent assessment of the prevalence of fake or spam accounts on Twitter's platform," as stated in a letter to the company cited in the regulatory filing.
Source Fool.com
