Twitter (NYSE:TWTR) opened its IPO at $45.10 this morning. Investors are scrambling to get a piece of what they hope will be the next blockbuster social media company after Facebook (NASDAQ:FB). According to Dealogic, the average one day pop for U.S. listed technology or Internet IPOs is 35%. That leads us to the poll question of the day....
Please take a moment to vote on the poll and to share your thoughts with us about Twitter.
Twitter (NYSE:TWTR) has built a digital town square that's teeming with activity but riddled with financial potholes. Seven years after co-founder Jack Dorsey sent the first tweet through the online messaging service, more than 500 million posts are shared each day by everyone from the Dalai Lama to Justin Bieber.
But all the chirping hasn't translated to profits nor is it expected to any time soon.
Hello traders everywhere! Adam Hewison here, President of INO.com and Co-creator of MarketClub, with your mid-day market update for Monday, the 28th of October.
After the bell today, Apple (NASDAQ:AAPL) reports its earnings and this could be a real bellwether report for the market. With all of our technical indicators pointing in a positive direction, I believe that earnings will be on par or better than expected. I continue to rely on the Trade Triangle technology to stay in this market. Upside objective for Apple (NASDAQ:AAPL) continues to remain at the $580-$600 level. Continue reading "All eyes on Apple as Twitter takes to the road"→
The bungled initial public offering (IPO) for Facebook (Nasdaq:FB) was a real eye-opener for any company looking to go public.
Facebook's shares famously plunged soon after they started trading, in large part because the $16 billion offering was so large that it created a great deal of investor confusion as share allocations were misdirected.
Lesson learned. Twitter's imminent IPO will be for just $1 billion, leaving most of the company still in private hands. Look for Twitter to slowly offer more shares in various secondary offerings, but the initial scarcity factor is going to make huge instant profits for some investors.
If you can get a piece of this deal, buy it. But if you plan on buying shares only after they have started trading, you'll be making a big mistake. The relatively few shares means that shares are likely to be wildly overvalued -- at least at the start.