The Twittersphere is abuzz about, well, Twitter. The company debuted on the New York Stock Exchange yesterday in what was arguably the biggest IPO of 2013.
Twitter (TWTR) surged in its first day of trading, closing at $44.90 a share, up 73% from its initial price of $26 per share. The stock was down nearly 5% Friday morning.
So should you buy a sliver of the social media company or have you missed the boat completely?
“Stay away,” says The Daily Ticker's Henry Blodget. “At $45, Wall Street is assuming that Twitter is going to do about $3 billion of revenue in two years…that’s possible but I don’t think it’s likely.”
Blodget also points out that Twitter isn’t a mainstream product and it may never be. Just 16% of U.S. adults are on Twitter. And while two-thirds of Twitter users are international, they make up only a quarter of the company’s revenue.Read More »from Invest in Twitter? Don’t Even Think About It: Blodget