Something for the brave: Will the Meta stock benefit from Twitter- buyout?

On Monday afternoon, Tesla CEO and multi-billionaire Elon Musk got his buyout-offer on Twitter accepted by the board of directors, meaning that Twitter will go private under total control of Musk.

Musk struck the deal at a value of $54.20 per share, or a total market value of $44 billion. Twitter has stood out as one of few listed large caps in the social media space, and its likely delisting will leave tech investors in a shrunken investment landscape. Investors aiming to allocate funds towards social media stocks might thus direct investments to the other large social media stocks left in public space.

In the Twitter peer group, we note that Meta Platforms stock closed at $174,95, touching price-levels we haven’t seen since April 2020.Yesterday, Meta released its quarterly earnings report after markets closed. While earnings per share were moderately lower than analysts' expectations, the active user count was higher than expected.

Not indicated in the charts below, Meta was up close to 20 per cent yesterday in the after-hours trading. Thus, a rebound back up above previous low from March might indicate an attractive entry-point for the brave tech investors, believing in its fundamental value.

Meta Platforms (in USD) 12-month chart

Meta Platforms (in USD) weekly five-year chart

The full name for abbreviations used in the previous text:

EMA 9: 9-day exponential moving average

Fibonacci: There are several Fibonacci lines used in technical analysis. Fibonacci numbers are a sequence of numbers in which each successive number is the sum of the two previous numbers.

MA20: 20-day moving average

MA100: 100-day moving average

MA200: 200-day moving average

MACD: Moving average convergence divergence