twitter set to make a splash on wall street

8/12/2019 Twitter Set to Make a Splash on Wall Street

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Twitter set to make a splash on Wall Street

NEW YORK, United States, Nov 03: Wall Street is al!tter over Twitter, set to make the

most anti"ipated sto"k market de#!t sin"e $a"e#ook in a h!%e test or so"ial media and

the te"hnolo%& se"tor, reports '$()

No oi"ial date has #een set, #!t Twitter appears on a ast tra"k whi"h "o!ld see its

initial p!#li" oerin% pri"ed as earl& as Wednesda& or tradin% on Th!rsda&, a""ordin%

to some reports)

The "ompan& will trade !nder the *TWTR+ s&m#ol on the New York Sto"k E"han%e,

#reakin% rom the Nasda- market !sed #& a lar%e n!m#er o te"h "ompanies)

There is "onsidera#le e"itement a#o!t the .(O #e"a!se Twitter is *a !ni-!e prod!"t

that no one "an repli"ate,+ said /i"hael (a"hter, head o e-!it& resear"h at Wed#!sh

Se"!rities) (a"hter and his "ollea%!es said in a resear"h report that the& epe"t hi%h

demand)

*We #elieve that the market is likel& to %enerate appetite or more than 1 #illion in

sto"k,+ the& said)

*The simple r!les o s!ppl& and demand s!%%est that #& limitin% the s!ppl& o shares

oered to the p!#li" in its .(O, Twitter will #e !na#le to satis& demand)+

'nd Twitter appears to have learned a lesson rom $a"e#ook2s de#a"le in /a& 01,

marked #& tradin% %lit"hes, a""!sations a#o!t se"ret inormation and a pl!n%e in the

share val!e or months ater the .(O)

*The $a"e#ook sit!ation last &ear was a pere"t storm o an overheated private market,

a !ll& pri"ed oerin%, a massive amo!nt o shares #ro!%ht to market, all "ompo!nded

#& an histori"al te"hni"al %lit"h,+ said 4o! Kerner, o!nder o the So"ial .nternet $!nd)

*That "onl!en"e o events is not likel& to o""!r a%ain)+

's o its latest !pdate, Twitter will seek to raise !p to 1)5 #illion 6 one tenth the val!eo the $a"e#ook .(O 6 #& oerin% 70 million shares in a ran%e o 17 to 0)

That is a relativel& small "h!nk o Twitter2s "apital, and implies a market val!e #etween

8)3 #illion and 11)1 #illion 6 a "onservative i%!re "ompared with some o the private

market trades in Twitter so ar)

'nal&sts sa& Twitter, !nlike $a"e#ook, will not lood the market, and that with demand

e"eedin% s!ppl& the pri"e will rise)

The earl& Twitter investors ma& not %et maim!m val!e ri%ht awa&, #!t "o!ld #eneit

over time rom a rise in the share pri"e)


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69Star -!alit&, #!t -!estions on monetiation69

Twitter does have a star -!alit& that is likel& to !el interest, #e"a!se it is a ke& platorm

or "ele#rities, politi"ians and ;o!rnalists)

.n its investor presentation, the "ompan& !sed (resident


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Twitter plans to raise !p to 1)>#n via its

share sale

Twitter says it has over 200 million activeusers but has yet to turn a profit

Twitter has unveiled the price range for its shares when the company lists on the stockexchange.

In a filing on Thursday, Twitter said it planned to sell 70 million shares priced between !7and 20 "#!0 $ #!2% to raise up to !.&bn "#'()m%.

The offering represents !*+ of Twitter and values it at as much as !!bn.

nalysts said the valuation, which was less than forecast, indicated the firm wanted to avoidthe dip in prices that followed -acebooks listing.

/Theyre trying to price this for a very strong I1, ideally creating the conditions for a solidafter$market,/ said rian 3ieser of the ivotal 4esearch 5roup.

-acebooks shares were priced initially at *' per share. The stock soared within hours of itsdebut to a high of &) but later slumped.

6ome analysts had blamed over pricing of the shares as a reason behind the fall. owever,-acebook shares have since recouped most of their losses and are now trading above thelisting price.

8arnings worries

Twitters share sale on the 9ew :ork 6tock 8xchange will make it the biggest internetcompany to go public after -acebook.

The microblogging site has seen steady growth since its launch seven years ago.
http://www.sec.gov/Archives/edgar/data/1418091/000119312513409822/d564001ds1a.htmhttp://www.sec.gov/Archives/edgar/data/1418091/000119312513409822/d564001ds1a.htm


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ccording to its I1 documents, it now has 2!' million monthly users and )00 milliontweets are sent a day.

owever, all those users and tweets have not yet resulted in a profit. Twitter made a loss of(;m in the first six months of 20!*, on revenues of 2)&m.

6ome analysts said that while the lower$than$expected pricing may help its share prices in thedays after the listing, in the long run investors would still need to see the firm make profits.

/The fact that the valuation is lower than expectations, I think was smart by the underwriters.I think it will help the pop,/ said

twitter set to make a splash on wall street

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