[Infowarrior] - Twitter IPOs today

[Richard Forno]

(I'm not interested in the social media stock mania -- and remember, most times 'IPO" stands for "it's probably overpriced" anyway  --rick)

Twitter’s Market Valuation Suggests Wall St. Sees Huge Growth Potential

By PETER EAVIS

Twitter is a young company generating large losses as it competes in a highly uncertain sector of the economy.

And that is exactly why investors clamored for a piece of its initial public offering, which closed on Wednesday evening.

Twitter’s shares were priced at $26, giving the company an overall value of $18.1 billion, including stock that the company is likely to issue to employees. That makes Twitter worth more than many storied American corporations, like Alcoa and Harley-Davidson. At that valuation, each of Twitter’s 230 million users around the world is worth $78. Going by such numbers, the public offering has been a tremendous success for the company, which raised $1.8 billion from the offering, a hefty war chest.

All this is impressive for a company that has racked up more than $300 million of losses in the last three years — and may not show real profits until 2015.

But investors are betting that Twitter is virtually destined to become wildly profitable as advertisers pay it increasing amounts of money to reach consumers who use the service.

< - >

http://dealbook.nytimes.com/2013/11/06/twitters-market-valuation-suggests-wall-st-sees-huge-growth-potential/

---
Just because i'm near the punchbowl doesn't mean I'm also drinking from it.