Twitter IPO Vs. Facebook
Is there a race between social networks to see which company will have the bigger IPO? At first glance, it would seem Twitter had no intentions of posting such a high IPO, but their current policy of growth says otherwise.
When considering the nature of an IPO as an initial public posting, this one appears to be a shock to the market. Twitter was not expected to feature so strongly, even though they are worth a fraction of Facebook. This news is causing a buzz in financial circles.
Currently, Twitter sells for between $23 and $25 per share according to news reports. The company has pledged not to do what Facebook did by overvaluing themselves and causing decline in their share prices. Still, Twitter made a jump from between $17 and $20 per share in what the company had planned to be a system of moderate growth. They are now oversubscribed and not making money, just building their financial base.
This means investors are not earning a profit from this IPO. Yet, in spite of their high IPO versus low returns, demand for the Twitter IPO is high according to investors. This is an indication of how much more valuable the company is than previously expected. IPO investors often buy to make a quick profit, but this is not what Twitter wants. They want to grow steadily with committed investors at their side.
While Facebook is worth several times as much as Twitter, this rise in the IPO range is suggestive that Twitter is also a force to be reckoned with in the stock market.