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Twitter IPOs at $26/share with 700 million shares. Facebook ipo'ed at $38/share with 2.55 billion shares. Mathematically, Twitter's IPO is about 1/4 the value o

by hippy11 13y ago

Twitter IPOs at $26/share with 700 million shares. Facebook ipo'ed at $38/share with 2.55 billion shares. Mathematically, Twitter's IPO is about 1/4 the value of Facebook. Twitter has 200 million active users Facebook has 1.15 billion active users I don't think twitter is worth 1/5 the market cap of Facebook. It doesn't have photo albums, groups, calendars, events that facebook does, and twitter still has a long way to go for mobile. Most of my friends uses a third party tweet client (like tweetbot) and don't even have twitter's app installed. Therefore, I think Twitter is very much overpriced. Did I miss something? https://blog.twitter.com/2013/celebrating-twitter7 https://blog.twitter.com/2013/celebrating-twitter7 http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-2013/ http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-...

encoderer 13y ago
Yes. First, the IPO is 18% as big as Facebooks, not 25%. Second, if Twitter closes at this $26 share tomorrow, it will have a market cap about 15% the size of Facebook.
tobyjsullivan 13y ago
It would be better to consider Facebook's monthly active users at the time of their IPO. The breakdown looks more like this: Facebook at IPO: MAU: $845M [1], Valuation: $104B [1], Value/User = $123 Facebook Today: MAU: 1.15B [2], Valuation: $120B [3], Value/User = $104 Twitter at IPO: MAU: 218M [4], Valuation: $18.1B [5], Value/User = $83 [1] http://en.wikipedia.org/wiki/Initial_public_offering_of_Facebook http://en.wikipedia.org/wiki/Initial_public_offering_of_Face... [2] http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-2013/ http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-... [3] https://www.google.ca/finance?q=NASDAQ:FB https://www.google.ca/finance?q=NASDAQ:FB [4] http://techcrunch.com/2013/10/03/blindtweeting/ http://techcrunch.com/2013/10/03/blindtweeting/ [5] http://techcrunch.com/2013/11/06/twitter-prices-ipo-at-26-per-share/ http://techcrunch.com/2013/11/06/twitter-prices-ipo-at-26-pe...
- AsymetricCom 13y ago
  Wallstreet is insane if it thinks Twitter is making $80 a user in the lifetime of the company.

by hippy11 13y ago

encoderer 13y ago

Yes. First, the IPO is 18% as big as Facebooks, not 25%. Second, if Twitter closes at this $26 share tomorrow, it will have a market cap about 15% the size of Facebook.

tobyjsullivan 13y ago

It would be better to consider Facebook's monthly active users at the time of their IPO. The breakdown looks more like this: Facebook at IPO: MAU: $845M [1], Valuation: $104B [1], Value/User = $123 Facebook Today: MAU: 1.15B [2], Valuation: $120B [3], Value/User = $104 Twitter at IPO: MAU: 218M [4], Valuation: $18.1B [5], Value/User = $83 [1] http://en.wikipedia.org/wiki/Initial_public_offering_of_Facebook http://en.wikipedia.org/wiki/Initial_public_offering_of_Face... [2] http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-2013/ http://thenextweb.com/facebook/2013/07/24/facebook-users-q2-... [3] https://www.google.ca/finance?q=NASDAQ:FB https://www.google.ca/finance?q=NASDAQ:FB [4] http://techcrunch.com/2013/10/03/blindtweeting/ http://techcrunch.com/2013/10/03/blindtweeting/ [5] http://techcrunch.com/2013/11/06/twitter-prices-ipo-at-26-per-share/ http://techcrunch.com/2013/11/06/twitter-prices-ipo-at-26-pe...

AsymetricCom 13y ago
Wallstreet is insane if it thinks Twitter is making $80 a user in the lifetime of the company.