Key Takeaways:
- Twitter loses active users called 'heavy tweeters.'
- Elon Musk will close the deal on Friday, Oct 28.
- TWTR stock jumped 25% month-to-date.
YEREVAN (CoinChapter.com) – According to internal documentation, Twitter is losing its most engaged and active users, proving that Tesla chief Elon Musk will have a new challenge as he approaches the deadline to close the $44 billion buyout deal.
Where are the heavy tweeters?
In detail, the internal documentation in question is a study named ‘Where did the Tweeters Go?’
However, as informative as it is, the research doesn’t specify the reason behind the significant decline in ‘heavy tweeters,’ users who visit the platform at least six days a week and engage or tweet at least twice a week.
According to the paper, the focus of heavy tweeters’ attention also shifted.
The interest in sports and entertainment faded while cryptocurrencies and “not safe for work” (NSFW) content took the front seat. Heavy tweeters reportedly account for less than 10% of all monthly users. Then, they set the platform into motion, generating 90% of all tweets and half of global revenue.
Elon Musk has not yet commented on his plans to engage the heavy tweeters back onto the platform.
In detail, the multibillionaire brought the Twitter deal back on the table after the company sued him for refusing to go ahead with his acquisition plans. Shareholders later approved the purchase, increasing his pressure to complete the deal.
Will the CEO go through with the 75% employee layoffs as he intended? It is not clear. However, the Twitter stock TWTR did not despair, jumping 25% quarter-to-date.
TWTR stock is up 25%
Twitter stock TWTR traded at $52.8 in the European session on Oct 26, after a 25% jump quarter-to-date. The asset jumped on the news of Musk contacting the banks involved in the buyout deal and pledging to close the acquisition by Friday, Oct 28.
The banks providing $13 billion of debt financing have finished putting together the final credit agreement and are signing the document.
Also read: Twitter To Launch Its Own Crypto Wallet As Dogecoin (DOGE) Surges Over 5%.
It is unclear if the Tesla stock caught the ‘contagion’ from Twitter stock through association with Elon Musk. However, if TSLA stock keeps the bullish momentum, it could reach another significant support/resistance at $230.
Meanwhile, if TWTR stock closes the day above $52, it will successfully retest a former resistance, as seen in the chart below. The next potential resistance would stand at just under $55, the dotted line on the chart․
Tesla stock rebounds as well?
Elon Musk might have more to celebrate as the stock of his electric car company Tesla rebounded from a crucial support level. TSLA stock traded at $222 on Oct 26 after jumping 12% in the previous 48 hours.
