Has Elon Musk killed Twitter?! 🤯

TL;DR

Elon Musk backed out of his offer to buy Twitter, leading to legal action, while Tesla's stock rallied. Moderna saw growth without significant news, and Q2 earnings season is approaching for tech and growth stocks like Microsoft.

Transcript

hello and welcome to ticker tapes today we're taking a look at the world of high growth stocks there is only one place to start this week and that's with elon musk's decision to back out of his offer to buy twitter the news broke on friday afternoon however there had been reports that all was not right with the takeover before the announcement the ... Read More

Key Insights

• 🤝 Elon Musk's withdrawal from the Twitter deal was anticipated and already priced into Twitter's stock.
• 📰 Tesla's stock rallied after the news, as concerns about Musk's attention being diverted were alleviated.
• 🤨 Moderna's stock saw significant gains despite no major news, but insider selling raises concerns about sustainability.
• 👀 Q2 earnings season is approaching, with Microsoft's report being closely watched as a bellwether for the tech and growth stock sectors.
• 🥳 The theory of a positive surprise in earnings if a stock breaks its 50-day moving average held true for Microsoft in the past.
• 🤝 Twitter plans to take legal action against Musk and reduce overhead costs through layoffs in response to the failed deal.
• 📰 Investors will closely monitor the sustainability of Moderna's stock gains given insider selling and the absence of significant news.

Questions & Answers

Q: Why did Elon Musk back out of his offer to buy Twitter?

Reports prior to the announcement indicated that the deal was in jeopardy, and Twitter's stock decline over the quarter further suggested potential issues. Musk's decision was largely expected.

Q: What steps will Twitter take in response to Musk's withdrawal?

Twitter intends to pursue legal action against Musk to ensure the completion of the transaction. Additionally, the company plans to lay off up to 30 percent of its talent acquisition team to reduce overhead costs.

Q: How did Tesla's stock react to Musk's decision?

Tesla's stock rallied by 2.54 percent on Friday, resulting in a weekly gain of 11.71 percent. Shareholders were concerned about Musk's focus being diverted if he acquired Twitter, so this news relieved those fears.

Q: How did Moderna's stock perform without significant news?

Moderna's stock experienced a 23.37 percent increase over the week, reaching new highs. This growth occurred despite the absence of any major news or broker upgrades. Insiders have been selling stock, raising questions about sustainability.

Q: What is the significance of Microsoft's stock breaking its 50-day moving average?

Traders theorize that if a stock breaks or trades above its 50-day moving average before earnings, there is an increased likelihood of a positive surprise in the earnings report. Microsoft's stock achieved this, indicating potential positive momentum.

Summary & Key Takeaways

• Elon Musk withdrew his offer to buy Twitter, which was already anticipated due to previous reports and Twitter's stock decline. Twitter plans to pursue legal action and has initiated a restructuring plan.

• Tesla's stock rallied after Musk's decision, alleviating concerns about potential distractions from his role as CEO. This was crucial as Tesla is currently in a critical phase of development and expansion.

• Moderna, a COVID-19 vaccine maker, experienced significant growth in its stock price without any major news. Insiders selling stock raises questions about the sustainability of these gains in the future.

• Q2 earnings season is approaching, and Microsoft, often considered a bellwether for tech and growth stocks, will report later in the cycle. The stock showed positive momentum by surpassing its 50-day moving average.