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Why would the stock go lower than it was before Musk started buying?
by Jabbles 5y ago
Why would the stock go lower than it was before Musk started buying?
- chernevik 5y ago1. The chance that Musk would buy Twitter, non-zero before his purchase announcement and somewhat circulating as a market rumor and thus perhaps part of speculation upholding the stock, would go to zero. 2. Musk's departure could be read by some as a vote of no-confidence in management by a capable businessman, and that after some conversations with management about strategy.
- deleted 5y ago[deleted]
- cbg0 5y agoThe market is not rational, so anything could happen, which is why you should always assume the worst if you are a cautious individual.
- akomtu 5y agoBecause we're in a deep recession. Twitter and other sp500s are going to slide down regardless of what Musk does. He is offering a choice: "I jump the ship and it sinks a bit faster, or I give you a generous evacuation plan and deal with the leaks myself."
- dehrmann 5y agoMore information. It takes the usually remote possibility of a generous takeover offer off the table. Musk turned down a position on the board, signaling he thinks the company would be better off private. It arguably shows questionable judgement of the board.
- ROARosen 5y agoAside from the other reasons mentioned, don't forget hundreds of algos programmed to automatically sell once the price reaches certain low levels - which is bound to happen once large blocks of stock get offloaded.
- Freestyler_3 5y agoPeople will bail who bought on the good news PLUS people will bail who hear the bad news but didn't buy with good news.
- weezin 5y agoBecause there is going to be panic selling since everyone knows it will go down if they say no.