Tuesday's Market Minute: What To Know About Musk & Twitter

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Stock futures are lower Tuesday morning despite the major U.S. equity indices pushing higher into the close on Monday in an attempt to reverse previous sustained weakness. Yesterday’s strength seemed to come from falling interest rates, which bolstered the best-performing sector in the S&P 500 on the day: technology.

Tech giants including Alphabet GOOGL, Microsoft MSFT, and Meta Platforms FB ended the day with 2.9%, 2.4%, and 1.6% gains, respectively: a strong start to the week in which all three companies are slated to report earnings. Both Alphabet and Microsoft are scheduled for today after markets close.

Perhaps the biggest story dominating headlines, however, has to do with a well-known billionaire and popular social media company. Shares of Twitter TWTR ended the day up about 5.7% after the company announced it had accepted Elon Musk’s buyout deal valued at $44B. That values each share at more than $54.20 and is about an 11.0% premium to where TWTR closed last Friday, April 22.

In a statement announcing the deal, Musk called Twitter “the digital town square where matters vital to the future of humanity are debated,” and emphasized the importance of free speech to a “functioning democracy.” The deal has been approved by the company’s board and now awaits a vote of Twitter shareholders and regulatory approvals. On Thursday morning, the social media company is expected to post 1Q earnings, which will provide a clearer picture of what Mr. Musk is getting himself into.

Image sourced from Unsplash

This post contains sponsored advertising content. This content is for informational purposes only and not intended to be investing advice.