Today marks the first day that Twitter stock will available for the public to trade under the ticker ‘TWTR’. The tech company’s much anticipated IPO ($26) has sparked some controversy as to it stock will perform.
Although many predict that the stock’s price may see over $30 today, some investors remain skeptical as to the profitability Twitter’s business model in the long run.
Peyman Nilforoush, Co-Founder and CEO of inPowered commenting on Forbes said, “I don’t think most people realize how vulnerable Twitter’s ad business is right now… I don’t think most people realize how vulnerable Twitter’s ad business is right now.”
Chase Curtis of Sway Medical said, “The Twitter upside is that it will continue to bring viewers back to live TV and events with a more engaging experience, where advertisers can better capture the viewership of the valuable 25 to 40 year-old demographic.”
Another thing Twitter has going for it right now is that many of its users are using it as a mobile app. Considering that mobile advertising is one of the fastest growing sectors in this economy, investing might not be such a bad idea.
Still, a group of investors are bracing themselves for deja vu, claiming that Twitter’s IPO will be reminiscent of Facebook’s disappointing introduction to the public markets, because of aggressive overpricing.
So how is FB doing? FB began its public trading life last year on May 18th at $38 a share, only to bottom out at $18 four months later. As I write this article, FB is priced at $49.30 a share. If we are to compare TWTR to FB, I suppose it’s fair to say that both show a good potential for growth.
No surprise, TWTR is expected to be quite volatile until the end of the year. However, some predict it to be worth over $50 by that time.
So, are you planning on partaking in this business venture? Let me know, because I’m too broke even to pay attention.