Social media companies everywhere are wanting to IPO and Twitter land is all about it. In fact, they’ve already IPO’d. Twitter debuted on the NYSE in 2013 admist a wave of confusion leading up to their IPO
TWTR surged in its first day of trading, closing at $44.90 a share, up 73% from its initial price of $26 per share. The stock was down nearly 5% the next day.
So- the big question is- should you buy or should you invest somewhere else?
Henry Blodget, a well known guy in the industry said …… “Stay away,” and then want on to say “At $45, Wall Street is assuming that Twitter is going to do about $3 billion of revenue in two years…that’s possible but I don’t think it’s likely.”
Twitter has not really found a way to monetize themselves yet. But if they do, they could earn massive numbers. Which is why we’re seeing mixed opinions about whether or not to invest. Personally, I think it really comes down to a few things:
– do you have the extra cash at hand
– do you like social media and believe in a future full of smartphones and connectivity
But let’s be honest people, stock market news always has its hypes. In reality, the only people who are ever going to really make money from the company are the people who were in on the ground floor. They’re millionaires and billionaires now.
“Someday people will understand that just giving everyone a massive gift on the IPO isn’t actually success,” he opines.