Advice from a Non-Investor: Buy Twitter (UPDATE)
Update: With rumors swirling that the starting price may go up, we have changed our opinion and now believe that you should not buy Twitter in the beginning.
I don’t own stock. I will never own stock. I don’t read the Wall Street Journal and I didn’t take a single business course in college. With that said, you should listen to me when I say that you should buy Twitter if you can.
They are doing two things very right. First, they are pricing themselves low enough to avoid the painful entry that Facebook had before hitting a strong streak. Second, they’re focusing on building a revenue stream that will make them worthy of the $11 billion potential company value that many are anticipating. This combination means that you don’t need to be Gordon Gekko to recognize the upside that this stock will have.
While Facebook shot too high, Twitter is shooting too low. While Facebook is a mammoth operation, Twitter is streamlined. While Facebook has political risks attached to it, Twitter has been relatively clean over the years.
People complain about Facebook. They do so on Twitter.
The numbers themselves are pretty compelling, as can be seen in this article from ReadWrite:
Twitter seeks to raise $1.4 billion by selling 70 million shares for between $17 and $20 per share when the company goes public next month, the company revealed today. At $20 per share, it would be worth just under $11 billion.
Read More: ReadWrite