Arab Today, arab today in ipo twitter seeks to be anti facebook
Last Updated : GMT 08:56:10
Arab Today, arab today
Arab Today, arab today

In IPO, Twitter seeks to be anti Facebook

Arab Today, arab today

Arab Today, arab today In IPO, Twitter seeks to be anti Facebook

Madrid - AFP

Twitter\'s $1 billion stock offering suggests a cautious Wall Street debut by the popular messaging platform, careful to avoid the mistakes made by its larger counterpart Facebook last year, say analysts. \"The surprise is that they are doing such a small deal,\" said Michael Pachter, director of equity research at Wedbush Securities who follows tech companies. \"I think that\'s smart of them. The mistake Facebook made was they flooded the market with shares.\" Twitter initial public offering (IPO) unveiled Thursday indicates the shares offered will be a relatively modest percentage of what Wedbush estimates as a valuation of around $15 billion. Twitter did not give a date for the IPO but said it would take place as \"soon as practicable.\" Pachter noted that the \"relatively small initial public offering is intended to avoid the issues experienced by Facebook when it offered approximately $16 billion in stock, far more than the market appeared willing to absorb.\" He added that Twitter and early investors appear to be \"patient\" and will wait before selling shares, to ensure the supply is limited. \"I think this is being handled masterfully,\" he told AFP. Lou Kerner, founder of the Social Internet Fund, said investor interest will be high because social media is \"red hot\" but that Twitter still has some leaning to do to make it more ubiquitous. \"A lot of people go to Twitter and find it difficult to immediately get value from it,\" he said. \"That\'s not because it\'s not to be had, but it\'s not as easy as with Facebook.\" Other analysts meanwhile point out that the numbers provided in Twitter\'s IPO filing failed to live up to the most optimistic estimates for growth in users and revenues. Twitter disclosed that it had 218 million monthly active users as of June 30 in a 44 percent increase from the same point a year earlier. It reported that it lost almost $80 million on some $317 million in revenue in 2012. Twitter brought in $253.6 million in revenue in the first half of this year, but remained in the red with a loss of about $69 million. \"I think they are still very early in the value proposition of what they are offering,\" said Kerner. Kerner noted that the number of active users \"is still a huge user base, its only because of Facebook\'s reach that we look at 200 million and aren\'t as impressed.\" Shea Bennett, who edits the All Twitter blog, which monitors the social media site, said the figures in the filing were \"pretty underwhelming.\" \"For me, the biggest disappointment was Twitter?s slow rate of active user growth,\" Bennett wrote. He said the chart provided by Twitter shows \"a jump of just 14 million actives, or 6.8 percent, since March. What does this slow acquisition of sign-ups mean for Twitter\'s future?\" John Battelle, an Internet entrepreneur who helped launch Wired magazine and founded the online ad exchange Federated Media Publishing said Twitter\'s revenue growth is \"impressive\" even if it does not quite measure up in some respects to giants like Google and Facebook ahead of their IPOs. Battelle said Twitter is profitable on the basis without counting items such as debt and amortization, \"which is good, but not spectacular.\" \"So from a financial point of view, Twitter\'s no Google. But it\'s no slouch, either,\" he wrote on his blog. \"It\'ll be very interesting to see what the company\'s third quarter filings look like. My guess is they\'ll be very strong -- the company is far too smart to plan it any other way.\" Trip Chowdhry at Global Equities Research argued meanwhile that investors should be highly cautious about putting money in the volatile sector. \"I think the optimism in Twitter is misplaced,\" he told AFP. \"Twitter is a great company but at terrible valuations.\" Chowdhry said he would value Twitter at no more than $3 billion, given \"brutal competition\" and hints that Internet users are turning to more \"visual\" social networks such as Pinterest, and Facebook\'s Instagram. \"I think the Twitter IPO marks the peak of the company, not the starting point of growth,\" he said. Chowdhry said he also is looking for more disclosure from Twitter about its revenues, particularly whether its early investors are also among its advertisers. He said these kinds of relationships were problematic in the dot-com boom and bust. \"We cannot make a judgment about the quality of the revenues,\" he said.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today in ipo twitter seeks to be anti facebook Arab Today, arab today in ipo twitter seeks to be anti facebook

 



Arab Today, arab today
Arab Today, arab today Mohamed Bahari prepares new collection for spring 2017

GMT 06:15 2017 Monday ,27 February

Mohamed Bahari prepares new collection for spring 2017
Arab Today, arab today 17.4 million tourists visit UAE in 2016

GMT 00:47 2017 Monday ,27 February

17.4 million tourists visit UAE in 2016
Arab Today, arab today Sheds light on major steps in 12-year career

GMT 06:07 2017 Monday ,27 February

Sheds light on major steps in 12-year career
Arab Today, arab today UN envoy sets out framework

GMT 07:25 2017 Monday ,27 February

UN envoy sets out framework
Arab Today, arab today Kalam Nawaem made a difference in social issues

GMT 06:43 2017 Tuesday ,28 February

Kalam Nawaem made a difference in social issues
View News in Arabic - Media: انترنت
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Aspires present the story of Egypt’s first president

GMT 06:18 2017 Sunday ,26 February

Aspires present the story of Egypt’s first president
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 06:42 2017 Saturday ,25 February

Reasons for the delay 'On the Stairs of Servants'

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"

GMT 10:51 2017 Saturday ,25 February

Pigs with edited genes show resistance

GMT 14:04 2017 Friday ,24 February

Messi visit will contribute in tourism

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 06:28 2017 Tuesday ,28 February

Dumbphones survive rise of the smartphone

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday