Updated July 10, 2022 11:34 am ET / Original July 9, 2022 2:07 pm ET
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Tesla CEO Elon Musk’s move to terminate his $44 billion deal to purchase Twitter is likely bad news for the social-media company, no matter how a potential legal battle plays out. Shares of Twitter have fallen 18% since Musk first made the offer while portraying the company in a harsh light by focusing on the number of fake accounts on Twitter
Wedbush analysts Daniel Ives and John Katsingris called the termination of the deal “a disaster scenario for Twitter,” adding that they anticipate an “elongated court battle” between Twitter and Musk. On Saturday morning, the analysts revised their 12-month target price for Twitter shares (ticker: TWTR) to $30, down from $43, and restated their Neutral rating. Another analyst, Trip Chowdhry of Global Equities Research, has an even lower price target for the stock of $20.