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Don't Fall Into a Twitter Stock Trap

TheMotleyFool

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It seems like easy money on the surface. Twitter (NYSE: TWTR) announced this week that it is set to be acquired for $54.20 a share. It's an all-cash deal, so the stock closing at $48.64 on Wednesday makes it seem as if this is an easy way to score an 11.4% gain by the time the transaction closes in a few months.

It's not easy money. A lot of things can happen between now and when Tesla CEO Elon Musk closes on the purchase of the social media giant. The ceiling may seem fairly obvious if the deal is completed as planned. It's time to start considering the floor.

Image source: Getty Images.

Source Fool.com

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