Twitter is getting ready to announce their Initial Public Offering (IPO) under the symbol TWTR and there is a chance that the average Joe, everyday investor like me, can participate. The last time I invested in an IPO was Facebook, and what a debacle that was. I bought at $42 and sold at $30. Now Facebook’s stock (FB) is sitting around $53. Buy high, sell low seems to be my mantra with the stock market so please don’t take this blog post as any form of advice.
Being that I work in digital marketing and advertising, the prospect of Twitter’s IPO is exciting to me. Our agency runs Twitter ads for clients and I think they have a strong revenue model. I think that Twitter, even with its faults and millions of Twitter-quitters, is a viable communication channel and ultimately a solid business. In today’s social media landscape, people are very fickle with what platforms they use and Twitter has been able to stick around and hold its own. I wish that Google+ would take off but that’s another story for another time.
According to this article in the Wall Street Journal, Morgan Stanley values its private Twitter shares holdings at approximately $22.31 a share, which is an increase of 36% from $16.42 in June 2013.
This Saturday (October 26th, 2013), the New York Stock Exchange (NYSE) is performing a ‘dry run’ for the Twitter IPO and according to this article on MSN Money, will “allow trading firms to conduct a dry run of their systems to prepare for Twitter’s IPO. The exchange seems to want to avoid the technical problems that marred Facebook’s debut on the Nasdaq Stock Exchange in May 2012.”
The NYSE wants to avoid the same mistake that they made with the Facebook IPO, which was a huge pop culture event and complete IPO disaster.
I talked to an investment advisor at The Royal Bank of Canada (RBC) today and questioned him about the upcoming Twitter IPO. He didn’t share much information with me, as nothing has been announced yet. However, he did say that if RBC Capital Markets is one of the underwriters, there would be a chance that I could get involved. He then walked me through the steps in my investment account as to how I would be able to participate, should RBC be involved in the IPO. See the screenshot below.
My suggestion is to talk to your bank, or financial adviser, about the Twitter IPO or try and do some research as to who the underwriters are, and talk to them. Please wish me luck in my pursuit of some pre-IPO Twitter shares. I will update this post as I learn more.