Tesla and SpaceX CEO Elon Musk is relaunching his bid to buy Twitter for $54.20 per share, or about $44 billion, following a tense legal battle between him and the platform. social media, according to a regulatory filing.
Twitter released a statement indicating that it intended to close the deal at the originally agreed price after Musk’s announcement.
Twitter shares closed at a price of $52 per share on October 4, following the announcement of the proposed acquisition of Musk. This reflects a 22.2% increase from the previous day’s close of $42.54.
If you had invested $1,000 in Twitter a year ago, you would have less money now. Your investment would be worth around $890 as of October 4, according to CNBC’s calculations.
However, if you had invested $1,000 in Twitter five years ago, your investment would have nearly tripled in value and was worth around $2,929 as of October 4, according to CNBC calculations.
And if you had invested $1,000 in Twitter when the company went public in 2013 at an offering price of $26 per share, your investment would be worth about $2,000 as of Oct. 4 before fees, CNBC found.
Meanwhile, shares of Tesla closed at $249.44 per share on Oct. 4. Shares of the electric vehicle maker are currently down around 32% in 2022.
Musk and Twitter have been locked in a ‘deal or no deal’ battle since April, when the billionaire originally offered to buy the social media platform for $44 billion. However, Musk tried to pull out of the deal in July. Twitter then sued him to force him into the deal, and both sides were set to go to trial on October 17 in Delaware.
If you’re considering investing in Twitter, Tesla, or another publicly traded company, remember: given the unpredictability of the stock market, you shouldn’t use a stock’s past performance as an indicator of its future performance.
Rather than trying to pick individual stocks, a passive investment strategy tends to make sense for most investors. Investing in an index like the S&P 500, which tracks the performance of the stocks of 500 major publicly traded US companies, can be a great way to start.
As of October 4, the S&P 500 was down nearly 12% from 12 months ago. However, the index is up around 49% since 2017 and up almost 117% since 2013.
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