Twitter opened today at $49 a share this morning on the NYSE. While it still holds true that 60% of IPO’s are overvalued, the betting man in me hopes that Twitter is in the 40%. The rational side thinks that $49 is a long way to fall and hope to short soon. Why do I think that you ask? Here are three reasons:
- Tech companies are historically overrated
- Revenue is king and ads will only go so far
- Twitter handled PR around IPO very well (too well)
In the short-term, not a good buy. Twitter has a lot of long term potential if it finds more revenue streams and expands its user base.