Recently, I found two topics in COMM101 very fascinating, one of them is social entrepreneurship, the other is Twitter IPO. We have talked about it mainly in class13.
To the question “Would you buy Twitter IPO”, my answer in class was “Yes, but only a small amount”. I read about different people’s analysis, some of them strongly suggest buyers should seize the opportunity for Twitter set to make the most anticipated stock since Facebook IPO; however, on the other hand, some people think Twitter is a very immature company compared with Facebook based on their revenue in the last few years. Their amount of users is less than Facebook as well. There is an interesting video: http://www.telegraph.co.uk/finance/personalfinance/investing/shares-and-stock-tips/10421967/Should-you-invest-in-Twitter-IPO-share-watch.html
I think my decision is quite rational. Firstly, I heard that Facebook IPO made a big mistake that their “value” was too high. Compared with Facebook IPO last year, Twitter IPO is at a “modest” level. Though they have less users, $20 per share is reasonable. The demand would be higher than that.
Secondly, Twitter has 8 years history after all. Now people rely on social net work websites more and more. For a well known social net work and media company, I think it is a proper time to go public. And this would help the company grow as well.
Cites,
“Cautious Twitter Valued at ‘modest’ $10.9 Billion as It Announces IPO of $20 a Share after Learning from Facebook’s ‘fatal Mistake’ Last Year.” Mail Online. N.p., n.d. Web. 03 Nov. 2013. <http://www.dailymail.co.uk/news/article-2475872/Twitter-IPO-valued-10-9bn-learning-Facebooks-mistake.html>.
“Zuckerberg: “Betting Completely on HTML5 Is One of The, If Not THE Biggest Strategic Mistake We’ve Made”.” TNW Network All Stories RSS. N.p., n.d. Web. 03 Nov. 2013. <http://thenextweb.com/facebook/2012/09/11/zuckerberg-the-performance-stock-obviously-disappointing/>.
Moon, Angela. “Wall St. Week Ahead: Twitter’s IPO to Provide Week’s Excitement.”Reuters. Thomson Reuters, 01 Nov. 2013. Web. 03 Nov. 2013. <http://www.reuters.com/article/2013/11/01/us-usa-stocks-weekahead-idUSBRE9A012W20131101>.
Moon, Angela. “Wall St. Week Ahead: Twitter’s IPO to Provide Week’s Excitement.”Reuters. Thomson Reuters, 01 Nov. 2013. Web. 03 Nov. 2013. <http://www.reuters.com/article/2013/11/01/us-usa-stocks-weekahead-idUSBRE9A012W20131101>.
“Poll: Will You Buy Twitter Stock?” The Tell RSS. N.p., n.d. Web. 03 Nov. 2013. <http://blogs.marketwatch.com/thetell/2013/11/01/poll-will-you-buy-twitter-stock/>.