Thursday, November 7, 2013

Twitter Goes Public! Here’s How to Play Day #1

It's finally here. Twitter (TWTR) will be freely trading as a public company and the world will most likely resume spinning on its original axis. There's no stopping it now. Twitter's IPO has become a force all its own. Hundreds if not thousands of people are working behind the scenes to make sure this thing goes off without a hitch. It would be easier to stop a tsunami with a tennis racquet than it would be to stop shares of Twitter from hitting the floor of the NYSE on Thursday morning.

Zor Capital founder Joe Fahmy isn't expecting Twittter's IPO to be as catastrophic as Facebook (FB). "If this doesn't open $30, or even higher I'd be shocked," says Fahmy in the attached clip. After the Facebook debacle of 2012, the investment banks have too much riding on Twitter to let it fail. However amoral they may be, the fact is it's not in the bankers' best interest to see Twitter get crushed. A Twitter crash would be bad for the IPO franchise and the banks have other companies they want to take public after Thursday. It's taken 18-months to get the public excited about another social network IPO. To the extent possible the banks need this to go well. "They want to make a point," as Fahmy puts it.
Please share this article

No comments:

Post a Comment