Twitter Prices IPO At $26

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Let's see, that price puts Twitter's valuation at $14.2 billion. What a bargain. :rolleyes:

Twitter tweeted the share-price news this afternoon. It's offering the public 70 million shares, which would value the company at $14.2 billion. It's raising $1.82 billion in the offering. Twitter could later sell another 10.5 million shares if the demand is there.
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MasonD said:
No go. Abort!
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One word: Facebook.

There is surely going to be an initial zerg rush and then it will fall off.

Some time later, some "analyst" will say buy and everyone will drive the price up to baffling values.
 
Many suckers and their money will be parted when Twitter shares are available.
 
Dotcom bubble 2.0? Or is this 3.0?

Might be worth shorting it. I shorted GroupOn and NetFlix in a stock-market class for university. Got me lots of fake cash (we did a semester long game).
 
Spidey329 said:
Dotcom bubble 2.0? Or is this 3.0?

Might be worth shorting it. I shorted GroupOn and NetFlix in a stock-market class for university. Got me lots of fake cash (we did a semester long game).
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I think this is bubble 2.0; even though web 2.0 is dead, it didn't have crazy funding/ipos
 
Twitter hasn't been profitable yet, right? There are only so many ways to monetize microblogging and most of those ways ruin the experience.

If Twitter was a service baked into the Google experience where they can leverage it with their other services, I can see it working out in the big picture but Twitter by itself can't be a profitable business.

Maybe I'm just shortsighted but I don't see this going well.
 
Man I had thought Facebook would go up on its first day and Twitter would go down on its first day. I guess I don't know what the fuck I'm talking about with this stuff.

I must not understand how these types of companies are valuated.
 
Trading at $44 a share right now and dropping. It's not worth nearly that much.
 
MasonD said:
Man I had thought Facebook would go up on its first day and Twitter would go down on its first day. I guess I don't know what the fuck I'm talking about with this stuff.

I must not understand how these types of companies are valuated.
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The difference is experience. The first few weeks/months of trading have to do with investors trying to get a quick in or make a quick buck. Over time though, the actual performance and standing of the company will moderate the price of the stock. While Facebook opened up high and then dipped, it's growth since has proven that the initial listing wasn't as much of a fluke as many thought.

Twitter will likely have a less tumultuous start, but may not be a very good growth stock since they don't make money. How can they expect to return a profit to their shareholders if there is no profit? So really, you should have expected the reverse, given the positions of the companies.
 
jflail2 said:
And here's a good read on the difference between this and the FB IPO:

http://www.businessinsider.com/what-is-twitter-worth-2013-11
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That is a pretty good article, but geared toward people with a lot more expendible cash. Note that she doesn't suggest individuals do a target buy on Twitter stock. You can take a chance on it and hope it will make a good margin down the road, but in the immediate future its not going to do a lot for you. Although it may be a great stock in a long term portfolio.
 
Hazard said:
Twitter hasn't been profitable yet, right? There are only so many ways to monetize microblogging and most of those ways ruin the experience.
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Well, they're great for collecting all your personal information and selling it. And they don't need to necessarily ruin the direct experience by placing ads or something similar. But they can let advertisers know exactly who you are and frustrate you indirectly.
 
NoOther said:
That is a pretty good article, but geared toward people with a lot more expendible cash. Note that she doesn't suggest individuals do a target buy on Twitter stock. You can take a chance on it and hope it will make a good margin down the road, but in the immediate future its not going to do a lot for you. Although it may be a great stock in a long term portfolio.
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I'd agree, but I think in general, "playing the market" is a rich man's game anyway. Her fund investment advice is pretty solid.

I've only made one sizeable non-fund venture in the last couple of years, and that was picking up American Airlines at like 60 cents a share not long after they declared bankruptcy. I figured there was no way the gov would let one of our airlines fail, and there would either be a bail out or a merger. The latter yielded me about $4.00 a share profit.

Past that, I'll happily throw more into Vanguard's REIT Index Fund for example, and reap the benefits of a steady dividend payout.
 
Timing is everything. User fall-off is rising, and so are losses, so what do you do as a company? Make it public.

This is better than a movie about wall street.
 
Nytegard said:
Well, they're great for collecting all your personal information and selling it. And they don't need to necessarily ruin the direct experience by placing ads or something similar. But they can let advertisers know exactly who you are and frustrate you indirectly.
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Except they actually aren't since they keep losing money...
 
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