What’s Up With the Twitter IPO

Twitter IPO

The Twitter-verse has been extremely interesting lately. For starters, there is a tweeting bra out there in the universe. (Before anybody gets all hot and bothered, a Greek ad agency created the handle to promote breast cancer awareness.)

By far the biggest news, however, has been about Twitter’s initial public offering.

The Twitter IPO: The Biggest Thing Since the Facebook IPO

Last month, Patrick wrote about Twitter taking the first steps in its IPO journey. Since then, the world has watched anxiously as the Twitter hype ramps up. There are just so many questions! How much money will it go for? Is it going to be bigger than Facebook’s IPO? Will it flail spectacularly its first year out of the gate?

The comparisons between the Facebook and Twitter IPOs make a lot of sense. After all, the idea of trading social media on the market was entirely foreign until Facebook did it. Before we all get sucked into the hype, though, we should take a quick look at the facts:

  • Twitter secured a $1 billion credit line in advance of its IPO.

  • Twitter will be offering 70 million shares for its IPO (which should be completed sometime next week).

  • Each of those shares will be initially available for $17-20. This puts the value of the company well below the $15 billion mark that many people anticipated.

  • Twitter will be traded under the symbol TWTR.

Why We All Care

Most people care about the Twitter IPO for the same reasons that they cared about the Facebook IPO. It is sort of unconventional to trade social media on the market. Others care because they “want to get in on the action” when the company goes public.

If you are in the market to make an investment, I have it on good authority from Forbes that you may want to hold off:

“An IPO is specifically designed for the large institutional investors, not necessarily for the individual investors who aren’t in the loop. Even if your broker gives you access to shares of Twitter from its initial public offering, you might end up paying an inflated price.”

Bottom line? Wait a few weeks before you make a purchase. If the Twitter IPO is anything like the Facebook IPO, the prices will change substantially in the first few days.

Are you interested in purchasing Twitter stock? Do you think Twitter going public will change the way that the micro-blogging platform operates? Will you quit? Do you even use Twitter?

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Elizabeth

A teacher by trade, Elizabeth LaBelle graduated with honors from the University of Michigan in 2011. After specializing in Political Science and Francophone Studies with a minor in Korean, the only tangible skill she can show for it is the ability to write in all three languages. Elizabeth never thought she would get paid to write in any language – but after four years washing dishes in an industrial kitchen and a year selling office supplies door-to-door, nothing surprises her. When she’s not writing or teaching, Elizabeth coaches high school debate and forensics. Her hobbies include thoroughbred racing, competitive pool playing and hunting for the perfect Chicago apartment.

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