The Impact of Twitter’s Acquisition on Stock Price: An Empirical Study on Event Analysis

Yaqi Zhang, University of Nottingham, Ningbo
Zesen Luo, University of Toronto
Ruisi Ma, Virginia Polytechnic Institute and State University
Volume4 nos.1 February 2023 ISSN 2755-3272

Keywords

Twitter, Stock Price, Acquisition

Abstract

This research examined the impact of Twitter acquisition. The main focus was on the stock prices of Tesla and Twitter. The time for the study was divided into three: Elon Musk initiated an acquisition of Twitter, Musk announced his intention to abandon the acquisition, and Musk became Twitter’s new owner and CEO. As one of Musk’s listed companies, Tesla is also the analysis object of the paper. The S&P 500 return was used to help obtain the return. This work analyses stock prices, annual reports, and news from Twitter and Tesla. Through descriptive statistical analysis, we get some critical conclusions. The study fills a research gap in the existing literature on Twitter acquisition.