When market bell for Twitter (NYSE:TWTR) rang on November 7, 2013, it was a booming start. It opened at $45.10 and closed at $44.90. This was approximately 73% upside of IPO price i.e. $26.
Twitter was another hot tech IPO and controversial too. Although pricing of TWTR was not done on aggressive side, still market participants were sceptical over the move ahead. Thanks to the lesson that twitter learned from facebook's IPO. Facebook which drumbled for many days, up-to now TWTR is going in a steady way.
But the discussion can not be completed with-out talking about the possible tech boomers which are in line for IPO. Dropbox, Square, Snapchat, Pinterest, Uber, Box, Scribd, Flipboard are just to name a few. Snapchat was recently in news for rejecting the facebook's offer of $3 billion. Although most of tech startups, including Twitter is not profitable yet, still the craze that market makes on them gives them insane valuations.
Venture capitalists are putting huge money in these start-ups. Pinterest, for say, raised $225 million recently and was valued at $4 billion. Company has recently started genrating revenue, so being profitable is a long term story. Although twitter IPO has proved that being profitable is an irrelevant thing in valuation space, although it adds a value. Moreover, theorists also configure on this point as valuation at any point of time depends on your all future cash flows, not just whether you are currently profitable and earning money or not.
But this tech bubble should stop some-where. This tech bubble should not repeat the insane valuations of the era of dot-com bubble. Theorists and analysts have to converge somewhere and that should be a balancing boundary-line between value and bubble.
Twitter was another hot tech IPO and controversial too. Although pricing of TWTR was not done on aggressive side, still market participants were sceptical over the move ahead. Thanks to the lesson that twitter learned from facebook's IPO. Facebook which drumbled for many days, up-to now TWTR is going in a steady way.
But the discussion can not be completed with-out talking about the possible tech boomers which are in line for IPO. Dropbox, Square, Snapchat, Pinterest, Uber, Box, Scribd, Flipboard are just to name a few. Snapchat was recently in news for rejecting the facebook's offer of $3 billion. Although most of tech startups, including Twitter is not profitable yet, still the craze that market makes on them gives them insane valuations.
Venture capitalists are putting huge money in these start-ups. Pinterest, for say, raised $225 million recently and was valued at $4 billion. Company has recently started genrating revenue, so being profitable is a long term story. Although twitter IPO has proved that being profitable is an irrelevant thing in valuation space, although it adds a value. Moreover, theorists also configure on this point as valuation at any point of time depends on your all future cash flows, not just whether you are currently profitable and earning money or not.
But this tech bubble should stop some-where. This tech bubble should not repeat the insane valuations of the era of dot-com bubble. Theorists and analysts have to converge somewhere and that should be a balancing boundary-line between value and bubble.
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