Twitter Inc. (TWTR), a popular networking site, closed Friday’s regular session at $39.31 after gaining an increase of 1.60% during the day. In the premarket, the stock has rocketed 21.44% and consequently was trading at $47.74 at the last check.
Musk Having Stakes in TWTR
TWTR stock has seen this humongous rise following Elon Musk, Head of Tesla, revealed that he has a 9.2% stake in the world’s leading social site. The revelation caused a prolific rise of more than 20% in Twitter stock price. According to sources, Musk has got a total of 73.5 million shares of Twitter, which values his total stake in the company at an eye-catching $2.9 billion.
Current Environment for Tech Stocks
A closer look at the charts reveals that social networking stocks, like TWTR, are facing troubling times since the onset of 2022. Investors started to flee the tech stocks at the start of the year, owing to general market-related factors. In recent days, the situation has for tech stocks has got more serious, as the growing geopolitical friction caused investors to look toward safer investments, like Oil and Gas, etc. The situation doesn’t seem to be coming back to normal in near future for tech stocks.
What’s in Store for TWTR?
Just like all the other tech stocks, TWTR has also been on a struggling front during the last 12 months. But a recent improvement in the financials and well other developments, particularly of Musk’s stake, is giving the hint that the situation is returning to normal for Twitter. The long-term investment could provide solid returns to investors; however, as the market is not perfectly stable at the moment, the short-term investment could prove to be tricky.
To sum up, despite the negative performance of tech stocks (particularly TWTR) during the last 12 months, they are expected to bounce back in the upcoming months. Hence, investors should be rational decisions when thinking of investing in the tech sector.