What is up with Twitter IPO?
The company announced on Thursday — in a tweet, of course — that it had filed paperwork with regulators to eventually sell shares in an initial public offering. However, it had filed the first documents months earlier under a special provision of securities law that allows a company with less than $1 billion in annual revenue to keep its financial data secret until it begins actively marketing its stock to investors. Twitter’s caution follows the disastrous IPO of its arch-rival, Facebook.
Shares of LinkedIn and Facebook rose modestly in after-hours trading, and CNBC financial news cable network reported that Goldman Sachs would be the lead underwriter on the offering. But spokesmen at Twitter and Goldman declined to comment.
Will this be a success for Twitter? Or a flop?
Bottom line, Twitter, created in 2006, was the first real social network that tore down barriers to the mobile market, innovating ways to communicate with # and @ symbols. They innovated a new way to reference people online, start conversations, and keep up to date with trends.
Now with data connections being large enough to support photos and videos, Twitter is on the decline. However, now with 4G speeds on all US wireless carriers, Twitter has been scrounging for growth and it’s not painting a pretty long-term picture. It has enough of a marketing dent to stick around for brands, agencies and celebrities, but for the common consumer it is too much information. Twitter is not in tune with what people now crave (photo and video) - with new entrants like Instagram (which surpassed twitter’s mobile user base in just 9 months from launch!).
Twitter may be here to stay, but there profitability model is not.
Analysts can say what they want until they are blue in the face, but analysts don’t move markets - they also thought the “books looked good” for PALM pilot before bankruptcy; but at the time - all you had to do was look around and see that nobody was using PALM pilots anymore.
I believe Twitter is following that path and is going to be a long-term disaster.
I am not an investor in Facebook or any other social media stocks; and this is just an analyst opinion and should not be used for investment decisions.
By G+ Author: Chrissy Reese.
