Twitter Is Headed For Declines | How To Trade The Trends

Twitter (TWTR) has been a very interesting stock to watch this week. After months of declines, we’ve started to see gains. The gains are the result of a key acquisition made by the company. However, I believe that we are seeing a big overreaction and that massive declines are on the way for the stock. Today, we’ll talk about the acquisition Twitter is in the process of completing, why the stock is likely to fall from here, and how binary options traders can take advantage of the trends. So, let’s get right to it…

Twitter Has Acquired TellApart

The big push that is causing Twitter’s stock to rise is the fact that they have moved forward with the acquisition of TellApart. However, they got a much better deal than what was originally agreed upon. That’s because the original acquisition was agreed upon when the value of Twitter’s shares was at $42.27 and that the acquisition is mostly in shares. In fact, Twitter is only making a cash payment of $22.6 million. The other $479.1 million will be paid in a pre-agreed upon amount of shares.

Twitter is hoping that the acquisition of TellApart will help the company to build revenue by increasing engagement on re-targeting ads. TellApart is an ad agency that has the re-targeting process boiled down to a science! Now, the big question is, will this help Twitter?

Will The TellApart Acquisition Actually Help Twitter

If you’ve followed Twitter, you know that the company has struggled for quite some time now. For more than a year, the big concern among investors has been Twitter’s dismal user growth. In fact, in early 2014, the previous CEO of the company, Dick Costolo resigned as a result of pressure from investors. In his place, co-founder Jack Dorsey stepped up and took the position. However, since then, Twitter hasn’t really done anything to solve their problem. In fact, the acquisition of TellApart is a testament to the fact that Twitter simply doesn’t have a plan to solve the problem at hand. Instead of focusing on improving the user experience, the company is focusing on making more money off of the users it has by increasing ads.