A buyout of Yahoo! Inc. (NASDAQ:YHOO) is likely on the horizon. Different companies such as the UK’s Daily Mail, along with Alphabet Inc (NASDAQ:GOOG) and Verizon Communications Inc.(NYSE:VZ) are potential suitors. Yahoo! extended the bidding deadline in an attempt to drive up the buyout price. While all eyes are on this auction, Twitter Inc (NYSE:TWTR) may actually be the better buy.
If smart investors had to pick two companies that were likely to be bought they would be Yahoo! and Twitter. If Yahoo! is taken over, all attention will turn to Twitter. With Twitter trading just off 52 week lows, investors should be prepared for rumors to start flying. In addition, the daily chart of Twitter is forming a bullish flag pattern. This chart setup signals likely upside this week.