Twitter stock falls after analyst downgrades, citing ‘uncertainty and disruption’ surrounding Elon Musk buyout deal
Shares of Twitter Inc.
TWTR,
slipped 0.4% in premarket trading Friday, after Susquehanna analyst Shyam Patil indicated he could no longer be bullish on the social media company given all the distraction. Patil cut his rating to neutral, after being positive on the stock since February 2020. He trimmed his stock price target to $45 from $50. In a bare-bones note to clients, Patil said he downgraded Twitter given “associated uncertainty and disruption” related to the pending takeover by Tesla Inc.
TSLA,
Chief Executive Elon Musk, “recent financial results and limited visibility into business trends.” The latest on the merger, Twitter denied in a court filing that it withheld Musk of details about its business, which Musk said was his reason for trying to back out of his $44 billion deal to buy the company. The stock has dropped 18.5% over the past three months through Thursday, while the S&P 500
SPX,
has edged up 0.1%.
