Last year Facebook launched an IPO and while it wasn’t exactly a success at first, the IPO has stabilized some. Twitter IPO should be next in line as Twitter is getting set to release its own IPO. This is creating a buzz in the market and it may be a glimpse of what is yet to come with more influential internet companies releasing IPOs in the future.
Twitter IPO May Create Avalanche of New Tech IPOs
Many hot internet sites may be willing to invest in the market which they have basically stayed clear of. Some companies such as Zynga Inc. (a game company) failed in their IPO debut, but people now see how the internet is becoming more prominent and a company such as Twitter is a safety risk. The markets for the most part are more stable and this will make it easier for investors to see these internet companies as worthwhile and potentially profitable investments. Twitter IPO could be a solid investment.
If the economy continues to improve and there are no major setbacks, then internet companies may find it easier to release IPOs and see some success with them. If employment rises this will also help the IPOs gain more traction in the market as there will be more consumer confidence. Some financial services have already seen calls to their offices about people interested in buying into the Twitter IPO. This company is a well-established online brand and it could lead to more established brands online going public and offering stock. Facebook is improving and its stock is now hovering around $44 dollars after a lot of ups and downs. If I normally invested in stocks (which I do not), I’d certainly consider putting money into the current Facebook stock and Twitter if and when it goes public.
Another company that potentially wants to go public is the Chinese e-commerce provider Alibaba. This shows that there’s a lot of interest in IPOs from internet companies as there’s been quite a bit of interest in the IPO of Alibaba as well as the aforementioned Twitter. Other companies such as Airbnb, Dropbox, and Uber who are candidates for IPOs, may decide to go public in 2014 if Twitter finds success. The pinboard social media site Pinterest is another company that may follow suit on Facebook and the Twitter IPO next year. I feel it’s a formality at this point that most of these large-scale internet companies are going to go public at some point.
As we continue to move into a more mobile internet, this may make it easier for many companies to release IPOs. The mobile market is extremely large and it’s only growing as more companies go mobile. It may not be long before a flood of IPOs begins piling in from these successful companies. Whether you do or do not agree with the culture shift, the digital world is absolutely changing the way we do business and the market may be highly impacted by this very soon. Eventbrite, an events ticket provider, and maybe another internet company ripe for an IPO soon. Flash sales provider Gilt Groupe is yet another IPO contender.
The main thing is that the bulk of these IPOs will need to be successful for the market to take notice. There is a sizable risk in investing because these companies could falter or their IPOs could fail. There’s some risk for investors (you have to take the risk to get the reward) but also a lot to gain. If Twitter and other technology companies have successful IPOs then the floodgates may open, but it’s too early to tell. The next couple of years will hold the answers.
The internet is here in full force and it’s not going anywhere. The world is changing and our culture is shifting. Twitter IPO is a formality at this point. Investing into these new internet IPOs of course holds risk, but as we make the inevitable transition in the internet age, it seems like a safe bet to me.