When it comes to social media IPOs, overall performance has been horrible. Just look at deals like Facebook (NASDAQ:FB), Groupon (NASDAQ:GRPN) and Zynga (NASDAQ:ZNGA).
So in light of this, it’s probably a good idea for Twitter to wait a long while for its own offering, right? Well, maybe not.
According to an interview on Yahoo! Finance, IronFire Capital’s Eric Jackson thinks a 2013 deal is a possibility. He points to some key facts: Twitter has been revamping its senior management and continues to grow like a weed, with revenues expected to go from $350 million this year to $1 billion by 2013. It looks like the company has figured out how to monetize mobile.
But something else makes a deal likely: lack of competing offerings. So far, it appears that 2013 may see only a handful of marquee Internet deals, like Airbnb. In other words, Twitter will have little problem rising above the noise.
Oh, and there will certainly be many investors around the globe who’ll want to get some shares, especially if the valuation is reasonable and the growth ramp continues apace.
Tom Taulli runs the InvestorPlace blog IPO Playbook, a site dedicated to the hottest news and rumors about initial public offerings. He is also the author of “How to Create the Next Facebook” and “High-Profit IPO Strategies: Finding Breakout IPOs for Investors and Traders.” Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities.
A long-time follower of the IPO scene, back in 1999 Tom started one of the first sites in the space called WebIPO. It was a place where investors got research as well as access to deals for the dot-com boom. Tom also wrote the top-selling book, Investing in IPOs. In it, he covers all the aspects of analyzing an IPO, such as reading the prospectus, detecting the risk factors and understanding some of the arcane regulations. But don’t worry — if that process is too intimidating for you, thankfully Tom will do the legwork for you right here in the IPO Playbook blog.
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