https://blogs.ubc.ca/nicolasbocanegra/

Is Twitter Overvalued?

Initial Public Offering shows that the value of the current and future of the businesses. And Twitter’s IPO price is $26 and now days it’s $44.90. This shows that the demand for Twitter in the stock market is increasing. I guess there are 2 main reasons that the demand for Twitter stock has increased.

Firstly, investors see that Twitter will successfully monetize their businesses. They believe that Twitter has enough potential to grow bigger and will bring money to shareholders.

Secondly, Twitter is actually working well enough to bring investors. This could be indemnified by their performance and their business plan.

But investment shouldn’t be just based on the gut feeling that this business is going to be successful. The investing should contain analysis of the business and Business Model Canvas to find out how the business is working.

There are many variables in SNS(Social Networking Service) market because many SNS businesses are valued very high but they don’t earn the money compared to the people’s expected value.