This Monday (25) the total purchase of Twitter by billionaire Elon Musk was announced and many investors wondered what to do with the shares of the social network. The opinion among the experts consulted by the UOL is unanimous: it’s time to flee the company’s assets.
After soaring 6% yesterday, today the TWTR shares – which are traded in New York – have dropped 3.59% around 2:25 pm (GMT), at US$ 49.88 each. Twitter’s BDRs — share receipts that are traded on the Brazilian Stock Exchange — (TWTR34) dropped 2.30% at the same time.
See details on Twitter’s swing and why investors should shy away from the company’s stock, according to analysts.
The shares of Twitter, acquired by the richest man in the world, have a price limit: US$ 54.20 (about R$ 264) – the price agreed for the sale.
The sale of the social network was agreed at US$ 44 billion. Musk will own 100% of the company, which until then was controlled by Saudi Prince Salman bin Abdulaziz, who held just over 5% of the shares. The rest belonged to banks and investment firms such as The Vanguard Group, BlackRock, State Street and Morgan Stanley.
Musk announced that, with the acquisition, the company will no longer have shares traded on the stock exchange, and will be privately held.
“With the closing of the deal, the action now has a ceiling, which is the price paid by Musk. It will not rise more than that. It will fluctuate in this price range”, says Guilherme Zanin, an analyst at Avenue Capital.
It is for this reason that the paper is not worth buying, according to Zanin. The prospect of gain is small and the fluctuations, until the official acquisition, will be many — even because the purchase is still subject to regulatory approvals.
“If the US antitrust authorities take time to evaluate the deal, these fluctuations will happen a lot. And there is still the risk of Musk giving up the deal”, declares José Augusto Albino, partner at Catarina Capital.
“The chances of the deal being approved by the US competition regulators are high, because Elon Musk does not have companies in this sector, of social media. But it is not known how long they will take to analyze the case”, says Breno Bonani. , chief analyst at VGR Asset.
The company’s statement mentions that it expects the purchase process to be finalized this year.
For those who already own shares or BDRs in the company, analysts recommend selling, say Bonani and Zanin.
Can Brazilians invest in foreign companies?
It is possible for Brazilians to invest in Twitter or companies listed on American stock exchanges by purchasing stock receipts — in the case of Twitter, TWTR34. These are the BDRs.
It is also possible to have an account with an international brokerage company and buy the share directly. Brokers such as Avenue Capital and XP Securities, for example, operate in this segment and allow this operation.