Should I Buy Twitter (TWTR)? Finance YouTuber Analysis

The analyst strongly recommends buying Twitter due to the high likelihood that Elon Musk will be forced to complete his acquisition. The company is taking Musk to court in Delaware, which has a precedent for enforcing such deals. Musk's stated reasons for abandoning the deal, such as spam accounts, were known to him prior to the agreement and are unlikely to hold up in court, suggesting the stock price will rebound to the acquisition price.

“Fortunately for shareholders though it's not going to be that easy for musk to walk away okay the company has said that they're willing to take him to court the tesla ceo to court to enforce that deal and a lot of musk's reasons for abandoning the deal just won't hold up in court.”

The analyst is avoiding Twitter, despite its significant price drop and recent solid revenue and user growth. He is concerned about the impact of iOS privacy changes on ad revenue, the substantial increase in expenses, and Twitter's historical inability to monetize its users as effectively as competitors like Facebook. He would only consider it at a cheaper valuation.

“The fact that Twitter has never really been able to monetize its users to the extent that Facebook or even Snap has doesn't help either... I might take another look if Twitter had a cheaper valuation here but on that straight comparison back and forth I like Facebook for its stronger monetization and other assets like WhatsApp and Instagram.”

The analyst finds Twitter's current valuation too high, with a projected internal rate of return (IRR) of only 6% at the current price of $63, which is not sufficient for his investment criteria. He believes the market has already priced in the anticipated growth from new monetization efforts like Twitter Blue. He would consider buying if the stock price drops below $50, which would make it a 'really great buy'.

“as much as I like the stock and would like to buy it I'll try to pick it up when it's cheaper here's the distribution so 63 dollars a share 6.6 irr assuming nothing changes here this is the same forecast if I buy a more expensive price it falls if it gets cheaper I don't know less than 50 bucks a share it'd be really really great buy”