Elon Musk's conference call on Thursday with Twitter employees did nothing to pump up TWTR stock amid questions over whether his proposed acquisition of the social media platform will close. The constantly evolving drama continues to play out amid an intensifying bear market, which is taking a toll on both Twitter and TSLA stock.
Twitter stock fell in afternoon trading after the conference call ended. Meanwhile, TSLA stock tumbled on a report it has increased prices on U.S. models of its electric cars.
On the conference call with employees, Musk mainly discussed views on content moderation. He didn't rule out layoffs.
Musk also discussed how he might remake Twitter to increase revenue.
"Transforming Twitter into a WeChat-like super app would be a massive undertaking for Musk," said Jasmine Enberg, analyst at Insider Intelligence, in an email.
"(Content) creators are the backbone of two of the apps he praised — TikTok and YouTube — and help drive revenue through advertising and commerce," Enberg went on to say. "If Musk wants Twitter to be less boring and look more like TikTok, that could mean a major shift toward video for the platform."
The Musk Twitter drama has many possible outcomes. Musk, the chief executive of electric car maker Tesla, has threatened to pull out of the deal. He claims spam accounts on Twitter could be much higher than the company says.
Will Musk Lower Bid For Twitter Stock?
But some analysts believe Musk aims for leverage to lower his $44 billion offer for Twitter stock. Musk has backed away from plans to borrow against TSLA stock to finance the acquisition.
"In terms of the deal itself, we believe $54.20 (a share)/$44 billion is essentially out the window at this point and is reflected in Twitter's current stock price/deal spread as the Street views a clear renegotiation of the current deal likely in the cards on the fake account issue," said Wedbush analyst Daniel Ives said in a note prior to the meeting
A court battle is also possible over a $1 billion fee levied against Musk if he backs out.
Twitter stock fell 1.7% to close at 37.36 on the stock market today. Tesla stock tumbled 8.5% to 639.30.
Some have questioned whether Musk has taken on too many projects.
TSLA Stock Falls Amid Bear Market
TSLA stock has retreated 34% in 2022 amid the bear market in technology stocks.
If you're new to IBD, consider taking a look at its stock trading system and CAN SLIM basics. Recognizing chart patterns is one key to the investment guidelines.
IBD offers a broad range of growth stock lists, such as Leaderboard. Investors also can create watch lists for issues such as Twitter stock and TSLA stock, find companies nearing a buy point, or develop custom screens at IBD MarketSmith.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.
