TWTR - Twitter starts trading November 7
- Thread starter FXforex
- Start date
Two words:
ALL IN!!!!
ALL IN!!!!
Ya and it sucks you are limited to buying it, what if I get a sell signal ?
Hrm, just raised the target price, and also increased the number of shares being sold....seems awfully similar to FB. You know what they say, if it looks like a duck, and it quacks like a duck.....
My prediction is it opens slightly above the target price and then faces downward pressure. Underwriters might be forced to step in to support the shares. It will stay on the first day above the IPO price but may go below that soon afterwards.
On the first day, underwriters will hedge the shares they are forced to buy on the open market by shorting other social stocks. So expect to see FB, LNKD, RENN, etc all tumbling.
My prediction is it opens slightly above the target price and then faces downward pressure. Underwriters might be forced to step in to support the shares. It will stay on the first day above the IPO price but may go below that soon afterwards.
On the first day, underwriters will hedge the shares they are forced to buy on the open market by shorting other social stocks. So expect to see FB, LNKD, RENN, etc all tumbling.
Prospectus
http://www.sec.gov/Archives/edgar/data/1418091/000119312513431301/d564001d424b4.htm
selling 70 million shares at $26
total outstanding 544.696 million
market cap at $26 is 544.696 * 26 = $14.162 billion
2012 revenue was $317 million
2013 revenue (9 months) was $422 million
approx 2013 revenue will be $656 million
(m22au estimation based on 9 months ending 30 Sept 2012 and 30 Sept 2013)
or $620 million, based on the USA Today article below
(620 * 1.53 = 950)
Using the $656 million figure for 2013 sales, price to sales ratio is 21.
http://www.usatoday.com/story/tech/columnist/2013/11/06/twitter-ipo-price-will-cost-you/3455525/
Twitter's roadshow presentation forecast the company to post $950 million in 2014 sales, giving it a price-to-expected-sales ratio of 16 even before it starts trading.
LinkedIn and Facebook have price-to-sales ratios of 12-to-1, based on Wall Street's revenue estimates for next year.
If Wall Street's projection is on the mark, Twitter's revenue will rise 53% next year.
That's faster than LinkedIn's expected growth of 42% and Facebook's, at 36%.
http://www.sec.gov/Archives/edgar/data/1418091/000119312513431301/d564001d424b4.htm
selling 70 million shares at $26
total outstanding 544.696 million
market cap at $26 is 544.696 * 26 = $14.162 billion
2012 revenue was $317 million
2013 revenue (9 months) was $422 million
approx 2013 revenue will be $656 million
(m22au estimation based on 9 months ending 30 Sept 2012 and 30 Sept 2013)
or $620 million, based on the USA Today article below
(620 * 1.53 = 950)
Using the $656 million figure for 2013 sales, price to sales ratio is 21.
http://www.usatoday.com/story/tech/columnist/2013/11/06/twitter-ipo-price-will-cost-you/3455525/
Twitter's roadshow presentation forecast the company to post $950 million in 2014 sales, giving it a price-to-expected-sales ratio of 16 even before it starts trading.
LinkedIn and Facebook have price-to-sales ratios of 12-to-1, based on Wall Street's revenue estimates for next year.
If Wall Street's projection is on the mark, Twitter's revenue will rise 53% next year.
That's faster than LinkedIn's expected growth of 42% and Facebook's, at 36%.
i'd say this one will shot up immediately. all other scenarios have already been covered with other social ipo & similar.
its easy to see all are worthless but no one dares shorting. see tesla
no one dares buying because buying something worthless is not good.
There is no other way than people will jump in at the top, and there is no other way right now than up.
Therefore this is clear BUY.
its easy to see all are worthless but no one dares shorting. see tesla
no one dares buying because buying something worthless is not good.
There is no other way than people will jump in at the top, and there is no other way right now than up.
Therefore this is clear BUY.
Quote from toolazy:
i'd say this one will shot up immediately. all other scenarios have already been covered with other social ipo & similar.
its easy to see all are worthless but no one dares shorting. see tesla
no one dares buying because buying something worthless is not good.
There is no other way than people will jump in at the top, and there is no other way right now than up.
Therefore this is clear BUY.
hey lazy check the short figures and put figures in tesla.
This might be the most overvalued company of time. It's the most expensive IPO in history relative to revenue. It's being valued higher than FB, despite losing money. There's nothing about this IPO that makes sense. Today's high can be the highest price it ever sees. Should be interesting to see what happens when we're allowed to short it.