One of students in our class discussed about the Twitter IPO in his blog. He believes that Twitter’s IPO will follow the exactly same path as Facebook. He thinks that “social media companies comes from the overvaluation of intangible assets specifically the value of brand.” Regarding to Twitter’s IPO, I have a different opinion. The IPO of Facebook might have been over-valued when it went public. However, due to the experience from what happened to Facebook’s IPO, the analysts for social media companies have established a reference frame and will unlikely overvalue the IPO for Twitter again. The biggest proof for the statements above will be performance of Twitter’s IPO.

Twitter’s IPO clearly shows no trend of declining. Instead, we can see a growth due to the market demand. What’s more, due to the fact that American president Obama used Twitter to help his election campaign, Twitter has demonstrated its power on advertisement. Therefore, I will tend to believe that Twitter has good ability to attract revenue from helping other companies do advertisements.

Link:https://blogs.ubc.ca/brandonkothe/2013/10/04/will-twitter-ipo-follow-in-facebooks-footsteps/

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