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.
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.
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