On its opening début on the NASDAQ Twitter Inc. rose 73% from a $26 IPO to $44.90. Why did the stock rise so dramatically compared to the recent debacle of the Facebook IPO? Well, too begin with, Facebook was overvalued and offered a significant amount more stock than investors demanded. Furthermore, Mark Zuckerberg, Facebook’s CEO and Founder was hesitant to publically release the company, leading to faulty anticipation. With the culmination of these two factors the company’s value depreciated rapidly. However, Twitters IPO was a great success, raising more than $1.8 billion. Twitter had more interest than anticipation; unlike in the scenario of Facebook. Investors felt the company has mass potential to grow and has begun to effectively tap into the mobile advertising market, a market believed to be very valuable. Unfortunately, Twitter isn’t safe yet. With the massive increase in price people feel that the company’s value is inflated and is unsustainable. It is a stock waiting to crash in some investors minds. “If you’ve got it, sell it,” said Brian Wieser of Pivotal Research Group. While the company succeed in its IPO, Twitter is bound to fall; it’s only a matter of time. The company has little structure, thus, it won’t be able to support this overly inflated bubble.

Liedtke, Michael. “Twitter Inc’s IPO: Five key players behind the social hub’s creation.” Financial Post. (2013): n. page. Web. 18 Nov. 2013. <http://business.financialpost.com/2013/11/07/twitter-incs-ipo-five-key-players-behind-the-social-hubs-creation/?__lsa=2318-f8d4>.

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