Twitter IPO valued at $11m

 
I wouldn't. I strongly favored Facebook in there IPO but I would not recommend twitter.

The problem with twitter is their advertising.

I've used/use different ad platforms, Google Adwords, Facebook, and twitter. In order of effectiveness / ease of setup I would rank them Facebook > Google > > > > Twitter.

Twitter's performance was poor. Not only that I believe in there financial information they released they note this.

Other thing is their leadership and developer relations, also poor.
 
I generally stay away from IPO's. It seems to me the cards are stacked against the average investor on most of them. I'll see where they are after their first quarterly reports are out but Twitter just isn't something I have been anxiously anticipating.

I thought seriously about getting in on the Potbelly's IPO a couple of weeks ago but backed off and I'm glad I did. That's one I'm going to give serious consideration to after they publish their first quarterlies.
 
The WSJ had a nice visual of a few other internet/social media IPOs showing their current market cap vs the IPO valuation.....

Facebook $81.2 at IPO; $126.4 current....55%
Linked in $4.3 at IPO; $28.3 current.....558%
Pandora $2.6 at IPO; $5 current....92%
Yahoo $0.334 at IPO; $33.8 current....10,019%
Google $23 at IPO; $344.7 current.....1,398%

Of course, they didn't include Groupon and other disappointments....
Groupon $12.9 at IPO; $6.6 current....-49%
 
eastside_purple said:
The WSJ had a nice visual of a few other internet/social media IPOs showing their current market cap vs the IPO valuation.....

Facebook $81.2 at IPO; $126.4 current....55%
Linked in $4.3 at IPO; $28.3 current.....558%
Pandora $2.6 at IPO; $5 current....92%
Yahoo $0.334 at IPO; $33.8 current....10,019%
Google $23 at IPO; $344.7 current.....1,398%

Of course, they didn't include Groupon and other disappointments....
Groupon $12.9 at IPO; $6.6 current....-49%
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Are those the initial IPO offering prices or is that what it ended up trading at on the first day of trading? Just seems to me very few average investors can ever get in at the initial offering price, the price usually runs up pretty quickly once they hit the open market. For instance, on the Potbelly's IPO I was looking at I think the initial IPO offering price was something like $14 and by the time I had a chance to jump in it had already run up to something like $32. At $14 I would have been in, at $32 not so much. I'll admit I'm not the most savvy investor in the world but that run up was almost immediate. Maybe there is something I should have done differently but like I said I'm not that savvy when especially when it comes to IPOs.
 
PantherVOR said:
Are those the initial IPO offering prices or is that what it ended up trading at on the first day of trading? Just seems to me very few average investors can ever get in at the initial offering price, the price usually runs up pretty quickly once they hit the open market. For instance, on the Potbelly's IPO I was looking at I think the initial IPO offering price was something like $14 and by the time I had a chance to jump in it had already run up to something like $32. At $14 I would have been in, at $32 not so much. I'll admit I'm not the most savy investor in the world but that run up was almost immediate.
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It's the IPO market cap (in billions), not the share price.
 
Well, you are correct though, initial IPO prices aren't available to average investors as an entry unless it's grossly overpriced. Obviously that's where you'd need to do some homework on an appropriate entry.
 
eastside_purple said:
Well, you are correct though, initial IPO prices aren't available to average investors as an entry unless it's grossly overpriced. Obviously that's where you'd need to do some homework on an appropriate entry.
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Right, and the information to do your homework with is hard to come by in my opinion. Institutional investors have a big advantage over the average investor in the IPO marketplace.
 
The ipo filings are usually pretty thorough. Not sure what else you'd need. Institutional investors will always have an advantage over individual investors, they just have more time, resources, experience, and industry specific connections than individual investors.
 
I will be going long.

Twitter is a lot more useful than Facebook is for everyday users. Facebook's massive amount of info on people's interests make it very useful for advertising. Twitter is different from Facebook in that regard but still extremely valuable. Moving forward, twitter has pretty much cemented itself as the premier news medium. It has been able to incorporate various old forms of media into it. Insanely valuable.

I just noticed yesterday yappi is expanding his use of Twitter. Found that interesting. Seems like a good move to me. Easy way to generate traffic.
 
OhioBobcatFan06 said:
Twitter is different from Facebook in that regard but still extremely valuable.
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How again? Their ads aren't very effective.

They also have the problem of 3rd party clients being used for a large percentage of their user base. They can't effectively advertise to these users.
 
How is it valuable?
As I mentioned, Twitter has literally become the medium all other mediums are based around. Video, text, image... All new media is referenced through Twitter.
I really view twitter more like google than Facebook. Sure, its roots are as a social media platform but the info you can find instantly in twitter resembles a search engine as much as a social media site. Twitter could eleasily throw up banner ads and swing a profit right now just based on views. The potential is so much greater than that.

Another big twitter advantage over Facebook? Mobile.
 
eastside_purple said:
The ipo filings are usually pretty thorough. Not sure what else you'd need. Institutional investors will always have an advantage over individual investors, they just have more time, resources, experience, and industry specific connections than individual investors.
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Ok, going to show my ignorance here. Where do you get those filings? I have a Fidelity account and the information I get there for stocks is excellent, love how easy it is to use. But I haven't had much success researching IPO's (granted I haven't really tried all that hard), maybe some of you Fidelity employees out there could help me out.
 
DennisRodman said:
Ehs, you understand a good stock buy isn't always synonymous with a company/product you deem to be good/useful?
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Not answering for Ehs here, but sure I do understand that. But if I don't like the product or don't find it to be good or useful I generally steer clear of it. I try to invest in what I know or what I have experience with. That is why I was interested in the Potbelly's IPO, I really like their product. I figure you have to start somewhere and it's always better to start out with something you like or find useful.
 
PantherVOR said:
Not answering for Ehs here, but sure I do understand that. But if I don't like the product or don't find it to be good or useful I generally steer clear of it. I try to invest in what I know or what I have experience with. That is why I was interested in the Potbelly's IPO, I really like their product. I figure you have to start somewhere and it's always better to start out with something you like or find useful.
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I agree with this for the most part. This quote just seemed uninformed, given the discussion: "I wouldn't. I strongly favored Facebook in there IPO but I would not recommend twitter."
 
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