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TWTR Stock: Even Amid Musk Drama, Twitter Stock Is Worth Owning


  • Twitter (TWTR) stock traders are understandably obsessed with whether the company will transition from public to private.
  • However, knowledgeable investors should not bury real title, which relates to the daily increase in the active use of Twitter.
  • Thus, investors should consider holding their Twitter shares while they are still publicly traded.

Source: shutterstock.com/khak

There are a lot of shortages in the world right now, but there is no shortage of controversy surrounding Twitter (NYSE:TWTR). Investors may feel nervous about holding TWTR shares, but there’s no need to panic to sell your shares.

All in all, nervousness is really just a byproduct of uncertainty. After all, if financial market traders hate anything, it’s uncertainty; But that’s only part of the long-term investment.

Still, it’s important to be aware of the buzz and brouhaha around Twitter now. At the same time, however, you can do what sane investors always do: let hard data inform your financial decisions.

What’s going on with TWTR Stock?

“I view the Musk/Twitter episode as a serious investment side show. It’s interesting to watch and it will be fascinating to see the outcome, but I won’t let it distract me from looking for good opportunities.

This is a quote from analyst Peter Tuz. And it’s a bold statement at a time when markets are wondering if Elon Musk will actually buy up Twitter and make it private.

The situation involving Musk and Twitter may not exactly be a “show”, but we don’t have to allow it to dominate our thoughts. In fact, I’m going to move on to some data points that current and potential TWTR stock investors should focus on shortly.

Still, it’s good to be aware of the latest developments from the Musk-Twitter soap opera. As you may know, Twitter announced on April 25 that the company had agreed to be acquired by Musk for $54.20 per share in cash. In addition, following this transaction, Twitter would become a private company.

However, the next thing you know, on May 13, Musk suddenly announced/tweeted“Twitter agreement temporarily on hold pending details supporting the calculation that spam/fake accounts indeed represent less than 5% of users. Thus, the official decision involving Musk and Twitter is still pending.

Stick to what we know

Musk is known for his attention-grabbing antics, so perhaps Tuz’s “sideshow” comment has some merit. In any case, there is no way to predict the future course of the Musk-Twitter negotiations. Therefore, we can instead look at some established facts.

An established fact is that Twitter generated $1.2 billion in revenue in the first quarter of 2022. This is impressive, as it represents a 16% year-over-year (YOY) increase.

Digging deeper, revenue from Twitter’s advertising segment totaled $1.11 billion, up 23% year-over-year. Hopefully Twitter can continue this positive trend in the coming quarters.

This is where the rubber really meets the road, though. In Q1 2022, Twitter’s average monetizable daily active usage was 229 million, representing a 15.9% year-over-year improvement.

With that in mind, some people might argue that daily active usage is one of the most important metrics for social media platforms. After all, users are the lifeblood of Twitter’s business model. And if they’re not active, then there’s no real business.

What you can do now

Collectively, there’s nothing wrong with following the Musk-Twitter drama. It’s more than a sideshow, but you don’t have to let it deter you from owning TWTR stock.

How will the drama be resolved? Only time will tell. In the meantime, however, Twitter is still a publicly traded company with positive data to back up a compelling bullish thesis. So don’t be afraid to buy or hold Twitter stock while you wait for the outcome of the ongoing acquisition drama.

As of the date of publication, neither Louis Navellier nor the member of the InvestorPlace research staff principally responsible for this article holds (directly or indirectly) any position in the securities mentioned in this article.



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