The easy answer is “no.” Wall Street doesn’t have feelings – money is its only religion. Wall Street traders won’t hold it against Twitter that a fraudulent tweet about a bomb scare at the White House caused stocks to tumble 0.7% in three minutes on Monday.
But what about average investors like you and me? A hacker breaking into the Associated Press account and spewing false news that causes our stocks to nosedive – albeit briefly – doesn’t exactly engender good feelings about Twitter. Investing is enough of a gamble already. Investing in a company that’s vulnerable to getting hacked and causing unneeded chaos feels even less safe.
Twitter execs were surely wary of going public to begin with given Facebook’s (FB) disastrous debut last May. This very public gaffe – with Wall Street feeling the brunt of the gaffe, no less – likely gives them additional pause.
I’m sure it won’t dissuade them from going public. Twitter has become too big not to go public – current estimates put the company’s value at around $11 billion.
But the fake bomb scare embarrassment may give Twitter officials another reason to take their time in filing their much-anticipated IPO.
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