Finimize - 🥶 Elon's got cold feet

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Today's big stories

Elon Musk’s deal to buy Twitter has hit a road bump
We’ve looked into whether you should buy the bitcoin dip like the whales are doing – Read Now
Walmart reported worse-than-expected quarterly earnings

Teasey Does It

What’s Going On Here?

Elon Musk threatened to pull out of his $44 billion takeover of Twitter on Tuesday, as the little minx decides to play a cheeky game of hard to get.

What Does This Mean?

Elon and Twitter have gone from the “Will they?” stage of their courtship to the “Won’t they?”: the Tesla CEO said on Friday that he was putting the deal “temporarily on hold” until Twitter clarified the number of fake accounts on its platform. Twitter claims bots make up fewer than 5% of its users, but Elon’s skeptical: he suspects it’s at least 20%. And if there really are fewer eyeballs on Twitter’s all-important ads, that could mean the company is worth a lot less than he offered. All this came to a head when the world’s richest man put his foot down on Tuesday, saying he wouldn’t go forward with his $44 billion takeover bid unless Twitter backs up its claims (tweet this).

Why Should I Care?

For markets: Is Elon having second thoughts?
Analysts reckon there’s one of two reasons for Elon’s power play: either he wants to find a way to pay less for the platform, or an excuse to walk away from the deal altogether. Investors seem to agree: Twitter’s stock is sitting 30% lower than the price Elon offered to pay for the company, which just goes to show they don’t have high hopes for the deal as it stands either.

The bigger picture: Elon reads the China playbook.
If the acquisition does go through, there could be big changes to come: Elon said this week that he’s open to the idea of turning Twitter into a “superapp” where users can shop, text, and post to social media all in one place – much like China’s WeChat. As plans go, there are worse ones: analysts reckon it would allow him to achieve his goal of quadrupling Twitter’s revenue by 2028.

You might also like: Work out for yourself what Twitter’s worth.

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Analyst Take

Should You Be Following The Whales?

By Jonathan Hobbs, Analyst

The crypto market has had a heck of a year so far.

And even the big guns haven’t been safe: bitcoin’s seen a record seven-straight weeks of losses at this point, meaning it’s now 55% below its November peak.

But while a lot of investors have swum for shore, the big-money “whales” are still out there filling themselves up on the OG crypto.

As for whether they’re right to be – well, there are three interesting charts that can help us answer that question.

So that’s today’s Insight: whether you should follow in the whales’ slipstream.

Read or listen to the Insight here

Get a $150 bonus with TradeStation

S&P 500 stocks are reacting to the current financial climate very differently.

Analysis from TradeStation shows that “safe haven” stocks – utilities, healthcare, consumer staples – have climbed lately, while cyclicals like transport, banks, and energy have slipped.

Some investors may consider choices such as either investing more defensively to ride out the storm, or else buy the dip on cyclicals and wait till they bounce back.

Whichever route you go down, you can do it on TradeStation.

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