Twitter’s Upcoming Multi-billion IPO


More than a year ago, the supposedly 'biggest tech IPO’ of all time, the Facebook (FB) IPO, turned out to be one of the biggest IPO flops ever. The stock today has gained some of the lost ground but still holds bad memories for IPO investors. Facebook shares tanked post IPO touching a price which was half its IPO price. Just as the stock has finally gained some momentum, reports of another social networking company going for an IPO have been doing the rounds. Yes, we are talking about Twitter and its upcoming IPO. In an indication of an upcoming IPO, we take a look at a tweet which appeared on the Twitter official page @Twitter. The tweet read ‘We've confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.’  Now an S-1 form is an initial registration of securities which is to be submitted by companies wanting to issue securities. It is a pre-requisite for shares of a company to be listed on a national stock exchange. This is a fair indication of the company going in for an IPO.

Now let us look at the size of the animal that might be heading our way by the end of this year or early next year.  The 140-character social platform currently enjoys a valuation in excess of $10 billion and while the size of its IPO isn't known, the fact that the platform currently has close to 215 Million users who generate over 500 million tweets every day is just one huge number among other big numbers which might lead to a huge IPO in the coming months. At Amigobulls we love internet stocks and we will keep you posted on the Twitter IPO.

To see Facebook’s latest stock price movement, click here Facebook (FB)

View our detailed analysis of Facebook stock.

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Comments on this article and FB stock

Tips from friends and the hype around Facebook contributed more towards people buying it rather than a close scrutiny of the books and business model. It was not like an "immature mobile strategy" was not known at the time of Facebook IPO. I think a similar thing will happen in the case of Twitter as well.
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It was not that that it was FB's immature mobile strategy wasn't known, the problem was that it was only partially known and was priviledged info, which resulted in the market-at-large wrongly valuing the stock. Therefore the price tanked when that information came out into the market. Though i will agree with you that a lot of the people bought into the stock without financial scrutinity, which in itself is a lesson behavioral finance.
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