By JOSH SCHWARZ
Twitter made its IPO filing official on Oct. 3, catching the attention of many potential investors.
Our S-1 will be filed publicly with the SEC momentarily. This Tweet does not constitute an offer of any securities for sale.
— Twitter (@twitter) October 3, 2013
Twitter, the micro-blogging social media website, was rumored to be ready to file an IPO (Initial Public Offering) for a while now. Twitter was originally funded by venture capitalist groups that invested large amounts of money in return for equity. Now, however, the investments will come from the public.
“What would worry me about putting money in Twitter is whether it is here to stay or if it is just a trend that will fade out in a few years,” said Jeffrey Goldman, a TCNJ graduate with a degree in business. “It’s important to determine if a company has peaked, or if it has room to grow.”
Experts and potential investors everywhere are trying to predict what Twitter can do on Wall Street. One comparison being drawn to help predict the value of Twitter is Facebook.
Facebook went public in May 2012, and initially disappointed on the open market. However, Facebook stock has experienced a significant turn-around since then. This past September, Facebook shares topped $50 for the first time in its existence, which is up 32 percent from its IPO price, according to CNN Money.
“I think you can look at Facebook a little bit, but it’s not an exact match,” said Goldman when asked about the comparison. “Twitter has already surpassed Facebook in terms of usage and I think Twitter has a higher ceiling when it comes to potential value.”
Other potential suitors were not as optimistic.
“If I am going to invest in a company, it has to be one that is more predictable when it comes to long-term,” said Jared Clarke, a recent graduate of Penn State with a master’s degree in accounting. “Twitter will be tempting to buy stock in because it is so hot now. But just as its rise in popularity was unpredictable, I think the future of the company is highly unpredictable as well, which can be unsettling for investors.”
The Twitter IPO will definitely make its co-founders rich beyond its wildest dreams, but what can it do for you?
Twitter Strikes Comcast Deal
Comcast Corp. has joined forces with Twitter to capitalize on the growing popularity of simultaneously watching TV and using social media.
People today watch TV with a phone in their hand or a computer on their lap, making the television experience more interactive.
The two companies joined forces to offer audiences a new feature, called ‘See It’, that makes it easier to combine the two. ‘See It’ will allow Comcast users to view shows with one click via Twitter, according to the Los Angeles Times.
“Twitter is where television viewers come to talk about what they’re watching on TV when they’re watching it,” Dick Costolo, chief executive of Twitter told the Los Angeles Times. “With See It, they’ll be able to tune in directly from a tweet.”
The ‘Twittersphere’ that exists now came a long way since its original microblogging, mini-messaging startup idea. Its influence is felt daily around the world, and now appears ready to make a splash on Wall Street.