Twitter’s share Inc.
fell in morning trading after Elon Musk said his deal to buy the social media company was stalling.
Shares of Twitter fell 10% to $40.43, on pace to close at its lowest level since early April, just before Musk unexpectedly revealed a 9% stake in the company.
Mr. Musk, CEO of Tesla Inc.
, last month reached an agreement to buy Twitter and make it private, limiting a volatile month for the social media company and its stock. But on Friday morning, he tweeted, “Twitter temporarily resolves withholding pending details supporting calculations that spam/fake accounts actually represent less than 5% of users .” He linked a May 2 Reuters report to a recent Twitter stock profile with those stats.
Late Friday morning, he added on Twitter that he was “remaining committed” to the acquisition. That helped Twitter cut its losses after falling more than 20% earlier in the pre-market session.
However, Twitter’s stock is currently trading about 25% below its trading price of $54.20 per share. The company’s shares have fallen recently, reflecting investor anxiety about the prospect of the deal.
But Twitter, like many tech stocks, has also been hit hard recently by a widespread market sell-off in riskier assets. Tesla stock was also hit hard. However, Tesla shares were up 4.7% on Friday.
Write to Caitlin McCabe at email@example.com
Copyright © 2022 Dow Jones & Company, Inc. All rights reserved. 87990cbe856818d5eddac44c7b1cdeb8
https://www.wsj.com/articles/twitter-stock-tumbles-premarket-after-elon-musk-says-deal-is-on-hold-11652445126?mod=rss_markets_main Twitter Stock Falls After Elon Musk Says Deal Is on Hold