As you probably have heard, Twitter has put itself up for sale, with Google, Microsoft, Disney, and Salesforce among potential suitors. The stock has run up quite a bit in the past month on speculation of a buyout, but is down 20% today (trading just under $20 right now) on rumors that Google and Disney won't bid.
First, my personal opinion in the company: I think Twitter is generally terrible for society (someone should create a Twitter clone that has minimum IQ requirements for an account), although I do use it as a news feed. It works great for me in this regard.
The company has a litany of issues, with declining user growth and an inability to monetize the platform being two of the chief concerns. While Twitter has some assets that the market may be overly discounting, from a valuation perspective, I don't think the company is worth a premium to its current market cap of $15bn.
Despite the fact that I think Twitter is a shitty company, am typically underweight tech stocks in my personal portfolio (more of a value guy), and rarely trade short-term, I am debating whether to toss a little bit of $ at it. My theory/gut feeling/whatever is that a potential acquirer is basically gonna say "fuck it, TWTR will be a money loser for us but it is a really unique platform and brand that would be a great bolt on to our existing suite of offerings".
What do you guys think? Will TWTR get bought out at a material premium to where the stock is now? Or will this idea end up in my investing notebook on the "try not to do that again you fuckstick" page?
Google, Disney, Salesforce, and Apple are already out. Maybe it's time to try China?
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