June 25, 2022

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Elon Musk now says Twitter has more fake accounts than the company claims, and demands proof from his boss: "The deal can't go ahead until that."

Elon Musk now says Twitter has more fake accounts than the company claims, and demands proof from his boss: “The deal can’t go ahead until that.”

The Twitter acquisition saga of Tesla chief Elon Musk continues and affects newspaper front pages and stock prices.

After working day and night to come up with a deal to buy social media for 400 billion kroner, Musk appears to be chilling. In recent days, Twitter’s price fell after the Tesla boss “temporarily” halted the deal and began researching the number of registered Twitter users who are automated spam accounts – so-called “bots”.

On Tuesday morning Norwegian time, Musk appeared on Twitter again, commenting on a piece of news from Tesla-friendly site Teslarati, which wrote that Musk may have been looking for a lower price, estimating that 20% of Twitter accounts are fake. .

Musk now claims that the true number may be higher.

“My presentation was based on the fact that Twitter’s reports to the financial authorities were correct,” he wrote on Twitter, claiming that the platform’s head refuses to provide evidence of the company’s own estimates that less than five percent of the accounts are fraudulent. .

“This agreement cannot continue until then,” Musk wrote.

new price?

The Twitter acquisition would have been one of the largest in history if it had been shown by Musk’s original bid, but on Friday, the Tesla boss raised doubts about the acquisition for the first time when he I was informed that the agreement has been suspendedappropriately enough in a Twitter message.

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Musk’s new tunes brought Twitter’s share down more than nine percent on Friday, and eight percent new on Monday. The share of Tesla, which Musk used to secure loans he might use to buy Twitter, has fallen more than 26 percent since the plans became known.

At a tech conference in Miami on Monday, Musk stated that fake and spam accounts make up at least 20% of Twitter accounts. Many are speculating that Musk is trying to lower the Twitter acquisition price, and according to Bloomberg, Musk himself has stated that he has not. “Not appropriate” to enter into an agreement at a lower price.

A prominent activist investor and so-called “short seller” Hindenburg Research raised a bet against Twitter’s stock, based on the thesis that Musk could command it with a lower price. This is because tech stocks have fallen so sharply since the agreement was struck, and he’s actually the only person willing to buy the company at an affordable price.

Current Twitter chief Parag Agrawal took to Twitter on Monday to refute Musk’s allegations of fake offices on the platform.

– Let’s talk about spam. And let’s do that given the data, facts and context, Agrawal writes on Twitter before continuing with a series of messages about how the company is working to remove spam accounts from the platform.

According to Agrawal, spam and fake accounts make up less than five percent of Twitter’s daily active users, something he allegedly refused to prove, according to Musk’s Tuesday letter.

Upsurge and fall in the stock market

Although Musk’s flirting on Twitter has been demanding a lot of attention lately, there’s been no shortage of drama in the markets in general. On Monday, major US indexes opened cautiously in the red, but avoided falls of the kind seen on Wall Street recently:

  • The broad S&P 500 index fell 0.39 percent.
  • And the heavy-tech Nasdaq fell 1.20 percent.
  • The Dow Jones Industrial Average was almost flat.
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The Nasdaq was, among other things, saddled with falls among heavyweights like Apple, Netflix and Tesla.

According to analysts at the US bank Morgan Stanley, more pain awaits investors.

Now that pricing is more attractive, and the stock market is oversold and interest rates are likely to stabilize below three per cent, it looks as if we are at the beginning of a new run of a “bear market,” according to a Bloomberg analysis.

– After that, we are sure that there will still be low prices, it is added.

Fear level rises

A “bear market” is the opposite of a “bullish market” and is an expression of when the general market, or certain indicators, is down 20 percent or more from its peak list, and over a certain period of time.

A “bear market” often comes at the same time as a bearish economic outlook and a general negative mood in the stock market.

For example, CNN’s “Fear & Greed” index fell well in “Fear,” indicating a market downturn. The indicator is based on the fact that “fear” leads to lower prices, while “greed” leads to higher prices.

Additionally, the much-discussed Vix Index, which is an indicator of expectations of volatility or turbulence in the market, is up more than 70 percent so far this year.

Thus, the stock market both in the United States and here at home fell sharply from the semi-euphoric mood that occurred during the Corona pandemic. Technology and growth stocks in particular have fallen in the face of geopolitical turmoil, hyperinflation and rising interest rates.

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The bottom has not been reached

According to Morgan Stanley, the bottom has not yet been reached. In an analysis on Monday, bank analysts led by strategist Michael Wilson, wrote that the broad S&P 500 index was not priced into a steady decline for both corporate quarterly reports and other macroeconomic factors.

Bloomberg writes that it is among those most pessimistic about future developments, with many other strategists believing that the bottom may have been reached.

The risk of a major economic recession has increased. This is another reason why the stock premium is so low and why stock prices are still high, in our opinion, the analysis indicates.

Wilson envisages that the S&P 500 could drop to 3,400 points, which in this case would equate to an additional 16 percent decline.

The S&P 500 stood at just over 4,000 points before opening on Monday and has fallen six straight weeks.(Conditions)Copyright Dagens Næringsliv AS and/or our suppliers. We would like you to share our cases using a link that leads directly to our pages. All or part of the Content may not be copied or otherwise used with written permission or as permitted by law. For additional terms look here.