Twitter's value still a concern at IPO
The main question would be, how much is Twitter really worth? The microblogging site has over 200 million active users and has been instrumental in the Arab Spring protests two years ago. It is one of the most appealing to many users, owing to its short 140 characters or less to communicate with the world.
Investors would have to determine the value, while Twitter's bankers go on roadshows to sell the shares of the social media platform. The high demand for social media firm stocks have increased, with the demand increasing after what happened with Facebook. There would be not much of a problem sellling the shares of Twitter.
The main drawback though would be what happened with Facebook, after the issues the company faced after its IPO and the subsequent loss in share values months later. This is one clear example of highly anticipated technology IPOs that can go south in an instance.
This inability to determine the proper price for the company's shares is one of the major issues in the Twitter IPO. The company is hiding behind the JOBS Act, a law approved last year that would allow the company to make its financial data confidential up until twenty one days before the stock is offered and marketed.
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