whats known and unknown

Twitter, Chegg & Zulily: Why all tech IPOs are not created equal

on November 22, 2013


A few weeks ago when Twitter (s TWTR) launched its public offering, many were wondering why the company had not priced its stock higher, and some were amazed that it had left nearly a billion dollars on the table. While they were right to ask the question, what they didn’t understand was that Twitter was doing what it was supposed to do when it priced its stock at $26 a share.

Twitter Tweets Perfection

That price not only allowed Twitter to meet its own objective — to get over a billion dollars for selling a tiny piece of the company — it also allowed its employees to feel great about the company. It also meant that the stock had enough room to climb higher, which in turn ensured positive press around the company.

Twitter NYSE

But most importantly, it allowed its large institutional investors to buy up bigger positions in the…

View original post 1,250 more words


Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: