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Twitter’s stock falls below where Elon Musk bought it, turning a $1.1 billion profit into a $40 million loss – News Opener

Easy come, easy go, as shares of Twitter Inc. fell below where Elon Musk bought it, wiping out more than $1.1 billion in gains in four weeks.

The social-media company’s stock
TWTR,
-5.23%

sank 6.0% in afternoon trading Tuesday, toward the lowest close since March 16. It has tumbled 31.1% since it closed at a high of $51.70 on April 25, which was the day Twitter agreed to be acquired by Musk for $54.20 a share.

A 13D filing with the Securities and Exchange Commission on April 5 showed that Musk, who is chief executive of Tesla Inc.
TSLA,
-6.93%

and founder of SpaceX, bought his 73.12 million shares of Twitter, or 9.1% stake, at a weighted average price of $36.157, according to a MarketWatch analysis of the data.

That means at the current stock price, which is 1.5% below the purchase price, Musk would be losing $40.7 million on his investment. That compares with a $1.14 billion gain at the April 25 closing price of $51.70.


FactSet, MarketWatch

Keep in mind that the Twitter buyout deal comes with a $1 billion breakup fee, that could be paid by either Twitter or Musk, if the deal falls through.

Twitter’s stock has dropped 17.6% year to date, while Tesla shares
TSLA,
-6.93%

have shed 40.8% and the S&P 500 index
SPX,
-0.81%

has shed 17.5%.

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