Seeking Alpha

Twitter IPO plays trade lower after price range set

Twitter (TWTR) shareholders GSV Capital (GSVC -2.3%) and the Firsthand Technology Value Fund (SVVC -4.1%) are selling off after the microblogging leader set an IPO price range that spells a valuation range of $9.3B-$10.9B, well below the $14B+ valuations that have reportedly been thrown around in private share offers.

The  fact Twitter's pricing is generally viewed as an act of caution meant to avoid a repeat of Facebook's IPO, rather than business pessimism, is probably limiting today's losses. Analyst Dan Niles: "Twitter is not going to price this thing to get every single dollar off the table ... They want to price it so the stock goes up on the first day, at least."

Meanwhile, the NYT and CNBC both report Twitter plans to price its IPO on Wednesday, Nov. 6, which means shares would begin trading on Nov. 7. The WSJ previously reported Twitter was looking to price around Nov. 6.

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Comments (3)
  • paulmichael
    , contributor
    Comments (155) | Send Message
    Good analysis - Twitter is going to fly on IPO because of this move. Recall GSVC dropped like a rock b/c of poor FB pricing. Not now.


    This is different. Only 70 million shares on the block means huge squeeze potential. IMHO the pop will reach 25-30 USD. It will then climb towards 60.


    Retire in a matter of days. Bet the house on GSVC.
    25 Oct 2013, 12:13 PM Reply Like
  • JizzMasterFlex
    , contributor
    Comment (1) | Send Message
    Forgive me, does this mean that GSVC and SVVC are selling their own stake in TWTR ipo? Or is this message referring to the stockholders of GSVC and SVVC?
    25 Oct 2013, 01:28 PM Reply Like
  • thevogelfamily
    , contributor
    Comments (3) | Send Message
    They definitely are not selling their shares in the IPO.
    26 Oct 2013, 11:18 AM Reply Like
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