Musk’s purchase of Twitter is the third biggest tech deal done so far. It is preceded by the 2016 Dell-EMC deal worth $67 billion and AMD’s acquisition of Xilinx worth $50 billion in 2022.
On Monday, Elon Musk clinched a deal to buy Twitter Inc for $44 billion. Twitter shares were hit after he bought the microblogging site. The stock slid 3.9 per cent and closed at $49.68.
Musk’s purchase of Twitter is the third biggest tech deal done so far. It is preceded by the 2016 Dell-EMC deal worth $67 billion and AMD’s acquisition of Xilinx worth $50 billion in 2022.
Twitter is a publicly-traded company and there are millions of retail investors who hold shares of the company. Indian individual investors who want to buy Twitter shares can use global investing platforms like Vested Finance, INDmoney, Stockal or Winvesta.
Recently, NSE International Exchange (NSE IFSC), which is a wholly-owned subsidiary of the National Stock Exchange (NSE), also announced trading in US stocks which will be facilitated through the NSE IFSC platform.
Interestingly, the Indian investors got an additional investment opportunity with an easy investment process and at a low cost. Currently, the route to investing in US stocks is cumbersome and expensive.
So as the hoopla around global stock investment is growing, are you planning to invest in the shares of Twitter after Elon Musk’s acquisition? Well, here’s what experts are suggesting.
According to Divam Sharma, founder, Green Portfolio, Twitter stock is trading at around $49 which is near to the price of $54.2 per share which is the offer price. The stock has already gained over 35 per cent since April 22. The deal is supposed to conclude in 2022 and the company will go private after it concludes.
“Investors, who have seen the gain should look at booking profits in the stock rather than trying to capture the arbitrage gain now. The valuations at which the stock is currently trading is at a substantial premium, the company is not able to deliver revenue growth over the last few years, also we might not see any more takeover bids from other investors which might impact the price,” he said.
He further added that for new investors, it is not the time to enter this stock.
“Currently, Twitter stock is witnessing profit booking. The news of its acquisition by Elon Musk will have a positive impact on the stock. Investors may buy on dips and hold the investment for long-term investment,” Dr. Ravi Singh-Vice President and Head of Research, ShareIndia told Business Today.
“When a publicly-traded company is taken private, the buyer offers to purchase publicly held shares at a premium. When the formalities of Twitter going private are initiated, a tender offer is made to acquire all publicly traded shares at a fixed price,” pointed out Manoj Dalmia, founder and director, Proficient Equities Limited.
“If the price stays well below the tender price, then you are at profit, whether you want to sell or not the shares will get executed at this price on the final day and you will receive an equivalent cash benefit. Indian investors can hold this till the callout takes place,” he added.
Meanwhile, Elon Musk on Thursday said that he is looking forward to adding FMCG bellwether Coca-Cola to his portfolio. Musk tweeted, “Next I’m buying Coca-Cola to put the cocaine back in.”
So, is he going for Coca-Cola next? Well, only time will tell!
Reference Link:- https://www.businesstoday.in/markets/global-markets/story/elon-musk-effect-is-it-a-good-time-for-indians-to-invest-in-twitter-shares-331604-2022-04-28