Good morning. Good morning, Phil Rosen. I'm reporting from Los Angeles.
I am putting off my return to New York due to the beautiful weather. A few seconds of Manhattan air could give me frostbite after weeks of sunshine.
The Wall Street Journal reported that Elon Musk was trying to raise funds to repay some of the more expensive parts of his $13 Billion Twitter loan.
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1. Musk could repay his obligations under the Twitter Takeover with new fundraising of up to $3 billion
Yesterday, sources told the Wall Street Journal that Chief Twit's team was looking into equity raise options that could be used for the largest portion of the $13 Billion debt.
Twitter's unsecured bridge loans totaling about $3 billion carry a 10% interest rate and the secured overnight financing rate which has risen in recent months.
The interest rate rises by 0.50 percent for every quarter without refinancing.
However, Twitter would find it much easier to pay off its unsecured bridge loans.
However, There's no guarantee that funding will come through as investors remain skeptical about Twitter's ability generate cash-flow.
Jeffrey Davies, a former credit analyst, predicted in December that Twitter's annual total interest expense would be approximately $1.25 trillion. This amounts to approximately $3.4 million per hour in interest payments.
Musk had predicted that Twitter's business would break even by 2023, citing cost-cutting measures. This included the firing of some 6,000 employees.
It's been 4 years since Twitter made an annual profit and has lost in 8 of the 10 years.
Musk knew he was taking on a sinking ship. Getting more investors will be key to how Musk's social media strategy plays out.
What do you think Elon Musk could do to increase revenue at Twitter? To let me know, tweet me (@philrosenn), or email me (prosen@insider.com).
In other news:
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2. As investors digest the most recent earnings release, US stock futures rose on Thursday morning. Both Levi's and Tesla were among the stocks that exceeded revenue expectations. Traders will be monitoring data on unemployment, gross domestic product and durable goods, all of which are due out today. These are the most recent market movements.
3. Earnings: Visa, MasterCard and Diageo all reporting.
4. Last year, this contrarian value fund manager outperformed 99% of his competition. He outlined the four rules that made him one of Wall Street's best managers and the eight stocks he recommends to buy right now.
5. A conglomerate controlled by the fourth-richest person on the planet is being targeted by the short-seller that exposed Nikola's fraud. Hindenburg Research published Wednesday a report that claimed Adani Group's billionaire chairman is "pulling out the biggest con in corporate history."
6. For the third consecutive week, mortgage applications rose. As interest rates fall, housing market activity is expected to rebound. The 30-year fixed rate mortgage at a fixed rate of 30 percent is currently at a low point of four months.
7. Do not rule out more inflation surprises. That's at least what Goldman Sachs analysts believe. The analysts explained three signals investors can use to predict price movements.
8. Credit Suisse's stock chief stated that investors are dumping into the wrong areas. According to his opinion, markets seem to be expecting a recession that will not come. He identified three areas where cash can be piled up to get the highest returns.
9. These 12 stocks were recommended by Evercore to be oversold in order to profit from China's opening. As evidenced by increasing earnings estimates, this group of Chinese companies looks poised to recuperate some of their losses. Check out the complete list.
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10. In the last 24 hours, Bitcoin and other cryptocurrency lost some of their January gains. The crypto market has still regained its $1 Trillion valuation by 2023. However, the value of the entire crypto market has increased 36% this month.
Curated by Phil Rosen in Los Angeles. Feedback or tips? Tweet
@philrosenn
or email
prosen@insider.com
Edited in New York by Max Adams (@maxradams), and London by Hallam Bullock, (@hallam_bullock).
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By: prosen@insider.com (Phil Rosen)
Title: Elon Musk is mulling over ways to whittle down some of his Twitter debt
Sourced From: www.businessinsider.com/elon-musk-raise-money-investors-twitter-debt-social-media-markets-2023-1
Published Date: Thu, 26 Jan 2023 11:05:00 +0000
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