Retail interest in Twitter (NYSE:TWTR) seems to remain intact despite news over the weekend that Elon Musk intends to abandon plans to buy the social networking company. According to data from investment trading platform, Capital.com, the volume of derivatives traded on TWTR was up 77% week-on-week, as at 10 July 2022. Over the same period the number of people trading TWTR also grew by 13% on the platform. At the time of writing, Capital.com clients with exposure to TWTR were predominantly long (85% long).
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Twitter Stock Takes A Large Hit
David Jones, Chief Market Strategist, Capital.com said:
“Not surprisingly, the stock price of Twitter has taken a large hit at the start of US trading, with the price down almost 8% from Friday's close. Elon Musk's decision to walk away - citing a lack of information on just how many spam and bot accounts use the social media platform - sets up an interesting week for the stock. On the one hand there is speculation that the Twitter board will take legal action to try and force Musk to go through with the deal - not a particularly attractive option for him given that he agreed to pay $54.20, about 60% higher than where the stock is currently trading. This is something that could help support the stock price after the initial fall.
But Twitter without a bid could not be that interesting to investors—pre-bid, the stock had traded as low as $30.50 this February and if Musk is not going to be their fairy godmother, investors may decide to dump the stocks. At the moment our clients remain bullish overall with 85% of those who have a position on Twitter currently long - looking to profit from an upwards price movement.”
About Capital.com
Capital.com is a high-growth investment trading platform empowering people to participate in financial markets. Its intuitive, award-winning platform, available on web and app, offers investors a seamless trading experience to over 6,000 world-renowned markets. To help investors trade with confidence, the platform is enabled with robust risk management controls and transparent pricing while its all-in-one Investmate app delivers extensive financial lessons and educational content to support clients in their investment journey.
