Twitter is trending on news that could affect its planned sale.
Tesla CEO and potential Twitter buyer Elon Musk recently sold $6.9 billion worth of his TSLA shares in preparation of the "unlikely" event that the courts force him to follow through with the acquisition.
Twitter is currently suing Musk to enforce the acquisition agreement, which Musk pulled out of after citing concerns regarding the number of fake accounts on the platform.
However, if the court rules in Twitter's favor, Musk could be forced to complete the transaction. Today, Investors are taking the news that Musk has sold more TSLA shares as a positive for the Twitter deal.
TWTR is leading the S&P 500 with a 3.6% premarket gain.
My Take: TWTR is a high-risk, low-reward trade at this price point. If the Musk deal goes through, shareholders will see modest returns that will put share prices in line with Musk's acquisition offer.
However, if Musk can successfully get out of the deal, share prices will almost certainly plummet. I think there's a lot more downside risk than upside potential here.
Trade Desk Inc [TTD] - Last Close: $54.50
Strong earnings numbers are boosting the Trade Desk this morning.
This morning, the cloud-based advertising stock reported better-than-expected numbers on its Q2 earnings release.
Trade Desk earned $0.20 per share on revenues of $377 million. The Street only expected EPS of $0.20 on revenues of $365.2 million.
The company said it expects to generate Q3 revenues of at least $385, which topped analysts' expectations for Q3 sales guidance of $382.3 million.
TTD is trading actively with a 16.9% gain on the news.
My Take: It was a strong quarter for the Trade Desk, but I am not sold on this stock yet. The company's valuation is still extremely elevated, which means there could still be a ton of downside risk in this struggling stock.
