Seeking Alpha

Twitter reportedly set to price IPO at $27

  • CNBC reports Twitter's (TWTR) underwriters are looking to price the company's IPO at $27, above an elevated price range of $23-$25, if current momentum holds.
  • A $27 price would allow Twitter to raise $1.9B, and sport an IPO valuation of $14.7B. All signs indicate demand has been very strong.
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Comments (12)
  • ericmcarter
    , contributor
    Comments (190) | Send Message
     
    Not one for making market calls, but I've felt for some time that Twitter's IPO would signal a near market top event. They've held out for what seems to be the right time as very few, if any popular technology names remain, waiting to go public. FB, Z, TRLA, LNKD have all seen poor share performance of late despite what the street calls "good" earnings. This stock will IPO now at ~13x sales with no profit. I can only assume, based on recent IPO's, that the stock will double to $54 and trade at ~26x sales.
    6 Nov 2013, 12:33 PM Reply Like
  • Richard Windsor CFA
    , contributor
    Comments (4) | Send Message
     
    The valuation is WRONG. $27 a share values the stock at $16.9bn NOT $14.7. 544m is the basic share count. You have to take account of the options. This brings the share count up to 626m at least and possibly as high as 738m. http://bit.ly/1el1xcU
    6 Nov 2013, 12:39 PM Reply Like
  • Deja Vu
    , contributor
    Comments (1583) | Send Message
     
    Underwriter bank analysts reporting inside info to big clients (reported by WSJ today) - Check

     

    Relentless hype on CNBC - Check

     

    Boosting IPO price at last minute due to alleged demand - Check

     

    Overvalued or non existent PE - Check

     

    Buzzwords like "monetization", "mobile", "social", "active users" - Check

     

    Supply of credulous retail investors who learned nothing from losing their money in FB - Check

     

    This is tower to Tango Whiskey Tango Romeo - you are cleared for take off and crash landing.
    6 Nov 2013, 12:56 PM Reply Like
  • ericmcarter
    , contributor
    Comments (190) | Send Message
     
    About as well as it can be said...
    6 Nov 2013, 12:59 PM Reply Like
  • tomlos
    , contributor
    Comments (1230) | Send Message
     
    I've never tweeted before, don't care to even pay attention, and just wonder, why would anyone buy this stock? I'll stick to my blue chips that virtually guarantee me growth and income thank you.
    6 Nov 2013, 02:20 PM Reply Like
  • TheJokerVSTheStupid
    , contributor
    Comments (40) | Send Message
     
    If you dont care, why do you comment?
    7 Nov 2013, 09:35 AM Reply Like
  • andrewvancity
    , contributor
    Comments (20) | Send Message
     
    Perfect @Deja Vu
    6 Nov 2013, 02:47 PM Reply Like
  • thesuer
    , contributor
    Comments (397) | Send Message
     
    Dejavu Facebook, only traders are going to have a field day. Why should anyone buy twitter apart from the twitterer who has nothing better to do than twitter to his fans.... I think boom boom it will go up and then down.....Facebook went up after a year after they got mobile right, right.
    Got to go and twitter this tweets...
    6 Nov 2013, 03:01 PM Reply Like
  • snakepitt1
    , contributor
    Comments (12) | Send Message
     
    This stock is good for only one thing, a quick flip. But, only if you can get in at IPO proce not street price once market opens
    6 Nov 2013, 03:04 PM Reply Like
  • nedilwo
    , contributor
    Comments (67) | Send Message
     
    I've been watching the news and comments for quite awhile. I'm a "educated novice" investor and am very appreciative of what I read and learn on SE. With all the latest news coverage, hype, etc. I think I have a newly coined term for it. HYPO - or HIPO if you prefer.
    6 Nov 2013, 03:51 PM Reply Like
  • Bouchart
    , contributor
    Comments (858) | Send Message
     
    Didn't $FB boost its asking price shortly before the IPO? Wouldn't be surprised to see $TWTR barely tread water tomorrow.
    6 Nov 2013, 04:10 PM Reply Like
  • tehfleet
    , contributor
    Comments (11) | Send Message
     
    they will defend the price for today thats for sure
    7 Nov 2013, 09:07 AM Reply Like
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