Good news came a week and a half ago when Twitter said they were wanting to be in the $17-$20 range to start their IPO. That didn’t last. Whether it’s their ego, poor advice, or ego fueled by poor advice, they’re now looking at the next price bracket of $23-$25.
We officially change our stance. You should not buy Twitter, not at first. The 20-25% bump in starting price means that they are likely going to go through the same rollercoaster that plagued Facebook for a year. The price over the next few months will likely dip below $15 because of the negative sentiment that will be created once it starts to fall under $20.
The sad part is that if they started in the $17 range as expected, they would have never dropped below $15. Now, our advice is to wait until they drop, even seeing if they approach single digits, then buy.
Here’s what Techcrunch has to say about it.
Twitter could price its IPO well above the new $23-$25 range it set earlier today, according to MicroVentures CEO Tim Sullivan. The pricing range was originally set at at $17-23. Though he’s providing no guarantees, Sullivan says that there has been strong interest in the private market for Twitter shares over the past few months, which indicates that Twitter could price as high as $25-28 when it finalizes its S-1 this week.
Read More: Techcrunch