Internet IPO’s have been big headline news recently. No one can fail to have noticed that Twitter’s initial public offering recently was completely different to the 2012 IPO of its biggest social media rival, Facebook. Twitter wanted to avoid making the same mistake of overpricing but some analysts argued that Twitter failed to raise maximum funds, adding that if it had valued its stock higher for the IPO, it could have easily raised another billion. Was the strategy of the micro-blogging site a success and does the share value and initial demand give us any clues to traders about the firm’s future? Read more…
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As Twitter Takes Off, Who’s Next On The Runway?
For technology executives weighing market flotations for Silicon Valley startups, this week’s gangbusters Twitter Inc initial public offering sent a powerful signal: full speed ahead. About a dozen private companies are valued at more than $1 billion and many of them have already been holding informal talks with bankers with a view to accelerating their IPO plans. File-sharing company Box has picked Morgan Stanley, Credit Suisse and JP Morgan to lead its IPO. The company has been valued at more than $1.2 billion by private venture capital investors but it remains unclear whether it is profitable. Twitter’s lack of profits proved to be no obstacle to the micro-blogging site raising as much as $2.1 billion in its IPO. That opens the door for other big-name private companies including Square, the payments company founded by Twitter co-founder Jack Dorsey which has begun exploring the possibility of an IPO next year. Profits are not expected until 2015. Airbnb, an accommodation service, is also often cited as a potential IPO candidate. “They don’t have inventory and have pretty low overhead,” said analyst Michael Pachter, who believes the company is profitable. Social media service Pinterest, meanwhile, raised $225 million at a $3.8 billion valuation in October even though it had only begun to make money in September by showing ads. Snapchat is perhaps one of the furthest down the line. Used by 9% of U.S. mobile phone users, Snapchat raised $60 million earlier this year at a valuation of $800 million. The market’s embrace of Twitter comes right as the IPO market enters what is typically a seasonal lull around the time of the Thanksgiving holiday and do not really get started again until February or March. With many in Silicon Valley believing that the appetite is growing for tech IPOs, there are a number of similar companies also taxiing along the runway ready for take-off. Watch this space!

Twitter Makes A Flying Debut With IPO
Twitter flew high in its first day of public trading, raising billions for the company’s founders and highlighting a growing exuberance rational for stocks and social-networking stocks in particular. Shares of Twitter traded between $45 and $47 in their first hours on the New York Stock Exchange on Thursday morning. At the stock’s $45.10 opening price on Thursday, Twitter had a total market value of more than $25 billion, making it worth more than companies such as Kellogg, Netflix and Whole Foods and twice the value of iconic aluminum giant Alcoa. Once it started trading, Twitter immediately got on track for an 80 percent first-day jump in its stock price, harkening back to the go-go days of the tech-stock bubble in the late 1990s. Twitter’s hyped IPO comes at a time when some market watchers are starting to warn of a new bubble forming in stocks. The Dow Jones Industrial Average and Standard & Poor’s 500-stock index are at record highs, and the tech-heavy Nasdaq is at its highest levels since early 2000, just after the tech bubble burst. Investors must therefore grapple with the fact that the hyperactive social network has not yet figured out how to make any money. It lost nearly $65 million in the quarter that ended in September, nearly three times the loss it suffered in the same quarter in 2012. The appetite for Twitter’s shares, however, is a sign that investors have faith in the company’s ability to find a way to spread its wings and steer itself into a #profit!

Who Has 1 Billion Users And Is About To Overtake Facebook?
It’s not Twitter, Google+ or LinkedIn. It’s a company that most people in the West don’t know. That, however, is set to change, with the explosive growth of China’s Tencent and its mobile messaging app WeChat…Last week, Facebook, the current king of social networks, admitted that it’s losing teen users and that the overall growth in its monthly active users has slowed to 18% year-on-year. This isn’t helped by the fact that it and other Western social networks are banned in China. By contrast, Tencent recently announced that WeChat’s users have almost tripled from the 85 million of the year before. And Tencent’s reach unlike local Twitter-equivalent Sina Weibo and Facebook-equivalent RenRen is not just restricted to China. In just four months between May and September 2013, its overseas users have doubled from 50m to 100m. Tencent has managed to differentiate its product with some killer features that keep users coming back for more. WeChat has neatly fused together the open approach of social networks such as Twitter, where anyone can follow anybody, and more closed networks such as Facebook which rely on mutual friend connections. With a $101bn US market cap, Tencent joins Yahoo!, eBay and Amazon among the world’s most valuable internet companies. It is looking like Tencent will overtake Facebook, although partly because China’s population is bigger and partly because it has an unfair advantage over Western competitors blocked out of the Chinese market. This needs to change. Predictions for the next few years are that Tencent will build a significant global business of great value: with products and brands we’ll increasingly come to know, interact with – and maybe even love. That’s our ten cent’s worth!

Twitter IPO to Decide Faith of Web Startups
Twitter Inc. (TWTR)’s initial public offering stakes a lot more than shares held by employees and investors. The firm’s performance will impact how dealmakers in Silicon Valley value upcoming Internet startups.
A strong Twitter debut will give the green light to venture capitalists and entrepreneurs for other consumer-Internet IPOs and the level of prices startups can handle in funding. A decline in shares, however—like the one experienced by Faceboon Inc. (FB) after its IPO in May 2012—could hurt valuation of internet startups and drive venture capital downwards.
Facebook’s sharp decline of 50 percent within its first three months as a public company spread its effects all across the startup field. Venture investor loss of faith in internet companies dropped for three consecutive quarters before picking up in the second quarter of this year, according to the National Venture Capital Association.
Twitter’s offer seeks to raise as much as $1.4 billion and it is speculated that the company has already drawn enough interest to sell of the shares in its IPO.
Is the Government Spying on YOU?
The current scandal over international spying that began earlier this month as German Chancellor Angela Merkel’s office suspected the U.S. had tapped Germany’s leader personal cell phone, might concern you more than you have realised. Giant internet companies like Google, Facebook, and Twitter, among others, have grown angry as information now suggests that the government may have retrieved information from their high-tech facilities without their knowledge or cooperation, despite the astronomical amounts of money such companies spend on consumer protection data. The companies have been pushing back in various ways such as publishing the numbers of government requests and planning new types of encryption for their data. But will tech companies security teams guarantee user privacy in the future? Read the whole article here.

Twitter Limits IPO Valuation, Just Like Its Tweets
Twitter Inc. (TWTR) is seeking a valuation of 9.5 times 2014 sales in its Initial Public Offering next month, according to data filed with the Securities and Exchange Commission yesterday, which would seem to extend the company’s economical approach of tweet characters to its stocks as well. The valuation comes 27 percent lower than the current rate of Fecebook Inc (FB) at 12.9 times 2014 sales, and 29 percent below Linked In Corp. (LNKD)’s 13.4 times 2014 sales.
The company that has popularised maxim-like short messages across the globe highlights in its relatively low valuation decision that it does not want to repeat history by following in the footsteps of Facebook, Groupon Inc. (GRPN) and Zynga Inc. (ZNGA), all of which lost more than half their value in the six months following their IPOs Twitter CEO Dick Costolo approach, in fact, has distinguished the company from its internet peers, as the filing to go public happened confidentially to avoid unnecessary hype that could drive prices up.
Twitter is planning to sell 70 million shares, which amount to a 13 percent stake, between $17 and $20 to raise about $1.4 billion, according to yesterday’s filing.
Top Tweet Of The Day? Twitter, As IPO Pegs Valuation At $11 billion
Seeking to avoid a repeat of Facebook’s much-maligned public debut, Twitter revealed more modest ambitions, saying its initial offering would raise up to $1.6 billion (987.8 GPB) and value the company at up to about $11 billion. The valuation was more conservative than the $15 billion some analysts had expected for the social media phenomenon, potentially attracting investors who might consider the money-losing company’s listing price a better deal, with room to rise. Twitter had signalled for weeks it would price its IPO modestly to avoid the sort of stock plummet that spoiled Facebook’s coming-out party. Twitter’s offering will be the most high-profile Internet IPO since Facebook’s May 2012 debut, when the social network giant’s shares fell below their offering price and did not recover until a year later. Still, the modest pricing doesn’t obscure questions about Twitter’s profitability. At a roughly $11 billion valuation, Twitter would be worth more than Yelp Inc and AOL Inc combined. Facebook’s market value is now $128 billion. Twitter may be treading more carefully than Facebook did, but there’s still plenty to tweet about!