How Can Twitter Be Valued At $13.6bn?Claimed valuation for Twitter IPO suggests that we have learnt little from the dot.com boom era. Another bubble about to burst.....?
If you remember the dot.com boom era, you will know that many people became very wealthy very quickly……and many people ‘lost their shirt’ in the resulting share price collapse. So is Twitter another case of people forgetting history?
Twitter, after canvassing professional investors for a week on how much they would be willing to pay for its shares, raised the asking price of its stock by 25% on Monday. The company said it would value its IPO at between $23 and $25 a share, up from the $17 to $20 range, indicating that it was a popular potential investment. Traditionally, however, the banks advising companies on their public debuts start out with a modest asking price, in the hopes that investors will prove willing to pay more.
Twitter also stopped selling its shares a day early, according to a news report by Reuters. It’s common for companies to keep order books open for investors until the day before the IPO, but Twitter plans to close the books on Tuesday at noon, Reuters said. In the traditional signals of Wall Street, that move could be interpreted in two ways: it could indicate either high demand for the shares or that investors are tapped out. ”
So keep an eye on this one. And unless Twitter has something pretty spectacular in the pipe-line, expect to see some angry voices from shareholders sometime soon.
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Did You Know?Neil is a digital entrepreneur who writes about marketing, strategy and practical methods to help business growth through leveraging the power of the internet. To learn more about the online marketing strategies and systems that he has utilised to create more personal freedom, click the 'Find Out More' button or link below: