Last month Twitter (NYSE: TWTR) announced its impending IPO and thousands of eager stock buyers raced to be the first to invest. However, instead of buying Twitter (NYSE: TWTR) shares, the investors end up buying thousands of shares of a bankrupt electronics company, Tweeter Home Entertainment. It’s because Twitter’s (NYSE:TWTR) stock isn’t expected to debut until mid-November on the New York Stock Exchange.
What’s wrong with Twitter’s IPO? – USA TODAY
What’s wrong with Twitter’s IPO?USA TODAYIf you want any evidence that Facebook’s (ticker: FB) botched May 2012 initial public offering was a traumatic event, just look at the following headlines regarding the most anticipated IPO since the “Facebook …
Where Facebook and LinkedIn are solidly profitable, Twitter isn’t. In that regard, it’s closer to local-business review site Yelp, which has yet to turn a quarterly profit (although that hasn’t stopped the stock from gaining 241% this year.)
When you buy stocks the first thing you should take into consideration is the company’s stability. Though it has been 7 years from its inception Twitter (NYSE: TWTR) had been into a stream of losses, $65 million in the third quarter and nearly three times more than it lost a year ago. That is the reason why some are skeptic in investing.Twitter’s announcement is its way of differentiating itself from Facebook’s uneasy IPO. But looking Facebook has rebounded well enough since then.
Of course, a company’s pre-IPO losses are no indication its stock will do poorly. Yet its stock is up more than 18,000 percent since the IPO. Even so, future Twitter shareholders poring over the company’s more than 200-page IPO document are being asked to take a leap of faith.
Twitter’s (NYSE: TWTR) announcement is its way of differentiating itself from Facebook’s uneasy IPO. But looking Facebook has rebounded well enough since then. In the intervening time, the company faces skepticism from potential investors and the broader public.
Twitter Expectations Lowered by Facebook IPO: Eggers
Nov. 04 (Bloomberg) — JP Eggers, Professor of Management and Organization at NYU, discusses the coming Twitter IPO and the affect Facebook has on it. He spe…
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