After the bell yesterday, Twitter announced that they had filed
an S-1 with the SEC for a planned IPO. The company made the
announcement known in a tweet (no surprise there), though few
details were made available beyond the initial
We've confidentially submitted an S-1 to the SEC for a planned
IPO. This Tweet does not constitute an offer of any securities for
- Twitter (@twitter)
September 12, 2013
Given the lack of details, it is reasonable to assume that a
Twitter IPO still might be a ways off, but it is worth speculating
now if the company will be a good investment.
Twitter has undoubtedly made great strides in boosting revenues,
thanks mostly to its 'sponsored tweets' section. And with a massive
user base of over 200 million, many believe that the sky is the
limit for this company.
Still, there is a big question mark of if Twitter is profitable
now, or if it ever will be in the future. Furthermore, the hype
over Twitter is immense, and the company will have a difficult time
in living up to previous social media firms that have gone public
Social Media ETF on Fire After String of Earnings
is up over 170% since its IPO, while
is now at an all-time high and a market-darling after its
last upbeat earnings report
. Meanwhile, the
Global X Social Media ETF (
which can be thought of as a broad barometer of global returns in
social media-related stocks, is up over 43% in the past one year,
further underscoring the positive trends in the space.
This is clearly a great environment in order to bring a fresh
social media stock to market, but can this incredible trend last?
And while LinkedIn and more recently, Facebook, have unlocked the
revenue secret for social media, will Twitter be able to do the
What do you think; will Twitter be a buy when it has its IPO or is
this a social stock to stay away from?
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