Twitter stock is on everyone’s mind right now and everyone wants to know how they can make money off of Elon Musk purchasing the entirety of it. Since he is taking Twitter private, all shares will be purchased once the contract is fulfilled. In order to understand how to make from this stock, we first have to understand the actual results of the contract recently signed.
First off, you will not get $54.20 per share if you were to buy Twitter right now. The way the contract is set up, Elon Musk and Twitter will eventually complete the contract and at that time, Elon Musk will pay for all current shares. This means that no matter what, when the deal goes through, Elon Musk will buy all your shares at $54.20. This will take the company private, Musk being the only person that owns it. The problem is that there is no way of knowing when Musk will fulfill the deal, so if you want to capitalize on this deal it may take a while.
What does this mean? If you want to capitalize on the “free money” you have two options: you can buy and hold for the deal to go through sometime this year or wait and look for news. Since there is no telling when the deal will complete, a good idea would be to buy the stock and hold onto it. This is assuming you don’t have any other stocks you’re interested in and can afford to tie up that money. The second option is a little more risky as it involves timing the market and you will likely not make as much money. Once the news breaks that Elon Musk will be buying Twitter at X time on X day, the market will go into a buying frenzy. If you can jump in before that happens, then great.
I would still recommend keeping an eye on Twitter for now and if you have some spare cash you aren’t sure what to do with, definitely purchase it. Furthermore, the stock is guaranteed to pay a premium to you, assuming you can wait for it to happen. If you are interested in trading and want an excellent app, use my referal code with Charles Schwab and get up to $1,000 depending on your deposit.
