Twitter, the social media giant that introduced me to the concept of microblogging, is giving those "investors" who bought shares a lot to cheer about this Christmas. Being listed at a price of $26 and recently hitting an all time high of $73.60 you can understand why some are so excited.
Whether the more recent share price of $70 is fair value or not, is irrelevant as "investors" have thrown caution to the wind, and don't want to be left behind as those that do not have the shares in their portfolio. The rally in December sees the share price up 170% in the month. I think for the first time I am seeing this Santa Claus rally I often read about.
I am seeing the changes at Twitter as they look to monetise this great platform which is now my news source of choice. I don't see myself using Twitter less any time soon, but that certainly doesn't mean I see value as an investor. They have not made enough happen to believe if I invested money in the company's shares, it would be worth more in future.
After all, if a company is valued at$39.88 billion by "the experts" I would at least expect the company to be making profits. Twitter at my last check, was yet to make profits as a business.
I just think if you are simply going to follow the rest of the tweeps on this one, you better read the story of Icarus.
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