June 28, 2022

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Twitter falls after Musk's accusations - Wall Street App - E24

Twitter falls after Musk’s accusations – Wall Street App – E24

Elon Musk accuses Twitter of not giving him enough information and thus breaching the takeover agreement.

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The week begins with a broad rally in US stock markets on Monday. All three major indices on Wall Street are in the red, with the Nasdaq tech index in the lead.

This is what it will look like shortly after opening:

  • The Dow Jones rose 0.52 percent
  • The Nasdaq is up 0.95%
  • The S&P 500 rose 0.79 percent

Twitter backtracks after new Musk accusations

In a letter to Twitter on Monday, Elon Musk accused the company of not giving him the information and data he needed to investigate the number of fake users on that platform.

The Tesla founder previously stated that his planned acquisition of the company “could not go forward” if Twitter did not provide evidence that the proportion of users of spam is less than five percent.

In the letter, Musk claims that Twitter actively opposes and impedes his right to obtain the information contained in the company’s purchase agreement, and therefore reserves the right not to carry out the acquisition.

Twitter’s stock fell five percent, at about $15.50, at $38.1 per share.

At the end of April, it became known that the board of directors accepted Elon Musk’s offer of $44 billion, or about 400 billion kronor at that time, for the entirety of Twitter. Later, Musk said, among other things, that the agreement was on hold pending more information about fake accounts and spam bots on social media.

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Twitter’s share price has also remained below Musk’s bid of $54.2 per share, which has been blamed in part on speculation that the acquisition will not complete.

Amazon arrives after stock split

Amazon is one of the American tech giants doing well on Monday. The stock is rising about 2.9 percent around 15.50.

It happens after the stock split went into effect on Monday. Each Amazon stock has now been converted to 20 instead, in line with the stock split announced in March.

The only thing that doesn’t make sense is that if stocks get as expensive as Amazon now, it’s hard for small savers to buy a single stock. When you make each share twenty times cheaper, it’s easier for small savers to participate in the stock, and then there will be a slightly more dispersed shareholder base, Mads Johansen, investment economist at Nordnet told E24. announced.

Amazon stock now trades for less than $126, compared to what would have been more than $2,500 before the stock split.

Rise in Europe and Asia

Stocks mostly pointed higher in global markets even before the US markets opened.

In Europe, the DAX in Frankfurt, the FTSE 100 in London and the CAC 40 in Paris all rose more than one percent on Monday afternoon.

In Asia, fewer and fewer coronavirus restrictions in Chinese cities were among the drivers when there was a positive start to the stock market week. In Beijing, among other things, public transportation is back up and running again, and restaurants will open to guests again.

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