TWTR closes below its price prior to Elon Musk announcing he was a shareholder

On April 1 before Musk disclosed his ownership share of Twitter, TWTR closed at $39.31.

Today it closed at $37.39.

This reflects the increasing possibility that TWTR share owners do not believe Musk will be able to close his deal to buy Twitter, or that he will renegotiate to a lower price.

For those of you wondering why TWTR traded below $54.20 after Musk announced his plan to buy at that price, this is why.

Interestingly, there is a misconception that Musk can pay $1 billion and walk away from the deal. The $1 billion is if the deal fails for any reason (like regulatory non-approval). If Musk kills the deal he could be on the hook for a lot more.