3 ms·

Sometimes it is just the public taking the fall. In this case, the loss making company has been growing revenues 100% a year so there is a chance joe public wil

Sometimes it is just the public taking the fall. In this case, the loss making company has been growing revenues 100% a year so there is a chance joe public will end up doing ok. Even with the disaster that was the Facebook IPO, if you held for a little over a year you'd be up nicely. Also joe public isn't really joe public. Joe public is hedge funds and pension funds controlled by professionals. Your 401k or pension might have some twitter, but in that case it was a professional making the call. Regular twitter users aren't bidding the stock up. They make up a small part of overall trading activity.

dctoedt 13y ago
> Even with the disaster that was the Facebook IPO, if you held for a little over a year you'd be up nicely. It could be argued that the Facebook IPO pricing was absolutely brilliant, in that Facebook and its selling shareholders received (what in retrospect was) top dollar under the then-extant market conditions, instead of in effect giving away hundreds of millions of dollars to the fortunate few who were able to purchase IPO shares.