Will You Be Buying Shares In Twitter? [We Ask You]

In the months that followed the Facebook IPO in 2012, the social network’s Initial Public Offering was widely considered a bit of a disaster. This view was justified in the short term, with an inflated valuation, delays in trading, and the price tanking for several months afterwards. But times have changed.

At the time of writing, Facebook’s share price is significantly higher than what it was at the time of the IPO, and the future looks bright for Mark Zuckerberg and co. Which is an interesting backdrop to what is happening at Twitter right now, with the rival social network preparing to go public.

This Week’s Question…

We want to know, Will You Be Buying Shares In Twitter? This is, in its most basic form, a very simple question that can be answered with a simple Yes or No, but that’s not how we do things around here. We want to delve a little deeper and find out why you are or are not planning to buy Twitter stock when it floats on the stock market in the coming months.

Twitter is a much smaller company than Facebook, with the former boasting only a fraction of the revenue, income, and userbase of the latter. This is reflected in the IPO numbers, with shares likely to cost around $30 apiece, raising around $1.5 billion to give the company a valuation of under $20 billion. Facebook, on the other hand, raised $16 billion to be valued at around $100 billion overall.

So, the Twitter IPO is a less momentous event, but still intriguing for those of us interested in the fate of tech companies. If you’re in a fortunate enough position to be able to consider buying some shares in Twitter then we want to hear from you. And even if you aren’t one of the fortunate few we’d still love to find out your thoughts on the subject.

twitter buttons   Will You Be Buying Shares In Twitter? [We Ask You]

Are you actively excited at the prospect of buying shares during the Twitter IPO? If so, are you excited because you’re a fan of Twitter and/or technology stocks in general? Do you hope to make money in the short term or are you in it for the longterm?

Are you going to avoid buying Twitter stock for a specific reason? Do you think this is another sign of the bubble that Silicon Valley and the wider tech community is currently powering? Do you see Twitter having a healthy future full of growth and revenue?

Drawing Conclusions

All comments will be digested to form conclusions in a follow-up post next week where we will detail the We Ask You Results. One reader will be chosen for the coveted Comment Of The Week, getting their name up in lights, the respect of other readers, and a T-shirt chosen from those available through MakeUseOf Rewards. What more motivation than that do you need to respond?

We Ask You is a weekly column dedicated to finding out the opinions of MakeUseOf readers. The questions asked are usually open-ended and likely to necessitate a discussion. Some are opinion-based, while others see you sharing tips and advice, or advocating tools and apps to the MakeUseOf readership. This column is nothing without you, as MakeUseOf is nothing without you.

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15 Comments -

likefunbutnot

Why would I? Why would anyone? Social media is a fad and is fad-driven, and the sites and services are closer to weather than anything else. The minute a site grows to general public acceptance, the young, hip and trendy folks move on to the next new thing. MySpace vanished from the Earth and Facebook is where clueless relatives can be found while all the cool kids now are using the Tumblrs and the Vines and such.

At the end of the day, you’d be investing in an advertising platform. YET ANOTHER advertising platform. And not even a particularly good one, since the pitch for twitter amounts to “sending SMS-like messages to the index-able web”, something that only hyper-connected people and witnesses to breaking news would even find particularly interesting.

I’m sure Twitter will still exist in 10 years. I’m also sure it’ll be mouldering in some holding company’s portfolio, bought for the one or two patentable ideas a Twitter engineer had, or a tiny, forgotten piece of some big internet firm’s media landscape, and probably almost exactly as exciting as HotBot.com.

I’m also sure that investors who got in on huge numbers of IPO shares will get a great return so long as they remember not to dump all their shares at the opening bell. Stocks and in particular tech stocks are extremely overinflated right now, and I think a lot of our current fiscal policies are driving generally higher Market Indices but eventually the US will be in a mood to re-regulate and some sanity will be brought to bear on the banks and investment firms that are overheating markets right now. The S&P and NASDAQ Composite are not a substitute for real income growth, something that the US hasn’t seen since the late 1970s, but as long as enough people believe their retirement income is tied to those values, they’re willing to go along with the kinds of decisions that lead to inflated stock prices at the expense of more informed choices or opportunities.

Anyway, no, I don’t think yet-another-metadata-rich-advertising-and-datamining-service looks like a sound place to put money.

Dave P

It’s certainly one point of view. I agree that tech stocks are currently over-inflated but I’m not sure I’d agree that social networking is a fad. I mean, it might evolve over the next decade but it’s going to be an important element of the Internet in one for or another.

The way people use Twitter to immediately react and respond to things happening, both news stories and media events like TV shows, could be better utilized by advertisers. I just don’t think Twitter has quite got its game on as yet.

Thanks for the comment, very clear and concise.

Neil Ferree

The smart money got in years ago. Smart money like Bezos and guys like him with vision, so yeah, 140 character social site that can monetize a Tweet a million times a minute is a good model to make money with.

Dave P

It SHOULD be able to make money but it’s struggling at the moment. You think the horse has bolted now then, and it’s too late to invest?

John

I suppose I will be investing in it indirectly, through my retirement plan’s Science and Technology fund. If I dabbled in the stock market directly, I would rather buy some Microsoft stock, on the off chance that Mullaly replaces Ballmer next year.

dragonmouth

Cisco and Qualcomm are a better investment. Mr. Softee has been trading in the $25-$35 range since the dot.com bubble burst. That’s about 13 years now. It has not been a growth stock in a long time. It is not a value stock, either. It is a stale stock that needs awful lot of mojo. But it is a good place to park your money. You won’t make much but you won’t lose much either.

Dave P

As dragonmouth points out, Microsoft is a stale stock. You’re unlikely to make a killing unless something unexpected happens in the near-future. Twitter is risky, but the rewards are potentially much greater.

Aibek

I would buy some (if the price is right) just to resell it in a couple of months time. Ultimately it depends on the offering price and the first week of trading.

Dave P

You think it’s a good short-term stock option then, Aibek? Do you own Facebook stock? If so, can I have some? ;)

Aibek E

Hey Dave)

To be honest I don’t think it’s a good stock in general (for long term investment) but I am pretty sure that a lot of people are going to be trading it. I suspect it will start trading high and will be dropping the first few weeks/months just like Facebook did. I would probably buy it if that happens and sell it when it rebounds 25-30% ).

Dave P

Ah, got you. If it goes the same way as the Facebook IPO then that would suggest a trend for social networking stock.

Trevor

Absolutely not. Not just Twitter, any offering of this nature

Dave P

Any technology stock or specifically Internet stock, social media stock, what?

Jerry Low

Not something that I would hold on to for long term investment. But why not when the hype is on like now – maybe I’ll just buy a small sum to ride on the wave.

Dave P

You think it’s going to climb in the short-term but not long-term then? Why so?