2U (TWOU) Stock Heads Up As Chatter Hits The Tape

2U Inc TWOU Stock News

2U Inc (NASDAQ: TWOU) spiked out of nowhere this morning, gaining nearly 3% in a matter of minutes. With no news being released by the company as of late, many are wondering what’s going on. Nonetheless, the gains seem to be the result of rumors. Here’s what’s going on:

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TWOU Stock Heads Up On Rumors

As mentioned above, 2U Inc spiked in the market moments ago, with no real rhyme or reason as to why. Nonetheless, we believe that we have found the reason for the run.

At the moment, rumors are hitting the tape that Elliott Management has accumulated an impressive stake in the stock. Should this rumor prove to be valid, it will also prove to be very big news.

Keep in mind, Elliott Management is the world’s largest activist investing fund. Should the company take a stake in the limping company, it will likely force changes that will lead to growth in shareholder value.

Let’s face it TWOU stock hasn’t had the best of years so far in 2019. Moreover, on a full year basis, the stock is down even further. A big player like Elliott Management could force the company to make moves that turn this trend around.

Be Careful

The truth of the matter is that I enjoy following rumors in the market. They tend to lead to quite a bit of movement, and opportunities can arise from them. However, they can also be dangerous.

It’s important to keep in mind that rumors are the most common way that today’s stock market is manipulated. So, until a rumor is proven to be valid, there’s a strong chance that it will be disproven and the stock will fall back to where it started.

What I’m getting at here is that if you’re going to make moves on rumors, make sure that you know what you’re doing and that you’re comfortable with the risk that comes as a result of these moves.

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