13.07.2022 – Applause, applause: In a dramatic about-face, Elon Musk has called off his purchase of Twitter. The share has lost a lot of value. Perhaps the group will manage to force the purchase through the courts. But Twitter is now damaged goods – perhaps some of the accusations are true, there are many fake accounts. But possibly the bombed-out stock is a buy if management takes the company’s flaws to heart.
Source: Bernstein Bank GmbH
Musk claims that Twitter underreported the number of so-called spam bots. So Twitter is said to have cheated – in fact, the short message service has far fewer real human users than claimed. Twitter counters that Elon Musk admitted he had not even read a detailed explanation from Twitter on the method of estimating fake bots.
Crucial design flaw
Wait a minute: why does Twitter have to estimate this crucial number – does the corporation know exactly how many real users it has, or not? Or is Twitter trying to hide something? In any case, Musk thinks the company’s claim that less than five percent of user accounts are artificial is a massive understatement. Twitter has not provided any clear information about this. We think: The number of fake accounts should be zero.
The second design flaw is Twitter’s blatant left-wing spin. In addition, too many Islamists have free speech. Only conservatives and right-wingers have to stay out.
The cultural chic is always right
So will Twitter fix its web flaws? Probably not. Because the woke avant-garde of the Silicon Valley cultural revolution is not interested in free speech. It wants the leftist seizure of power and has always supported the Democrats. What’s more, as long as Twitter is a virtual monopolist, its management will stick with the pseudo-accounts.
Our conclusion from all this: the stock is likely to retain some unsightly stains from the public washing of dirty laundry in court. We wonder if a savvy businessman like Elon Musk would have really dared to take the difficult step of backing away from a sealed purchase, unless there really is something fishy about Twitter. Only if the allegations are disproven to be absolutely false, or the business is incredibly strong, should things start to look up again. And, of course, if a recession is avoided. But who knows – maybe another prospective buyer will show up soon. We look forward to the next act – Bernstein Bank wishes successful trades and investments!
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