The growth over smartphones and tablets could make its IPO price a bargain in the long run.
Twitter, the social media marketing network giant has announced that it intends to increase the proposed price for its initial public offering (IPO) which is expected later on this week.
This helps to illustrate the enthusiasm that the company is experiencing as its IPO grows nearer.
As Twitter talks to prospective institutional investors about its future as a network and in social media marketing, it is clear that they are receiving a considerable response. This has caused buyers to wonder whether they should be looking at this new price as an opportunity.
Last week, it looked as though the price per share would be much different for this social media marketing company.
The IPO stock price had originally been estimated to be somewhere between $17 to $20 per share. This had investors extremely enthusiastic about putting their money behind this social media marketing company, as it appeared clear that the price would rise. However, the bankers from Twitter are now raising the price range so that it will now land between $23 and $25 per share.
That said, even though the new valuation may have cause investors to hesitate before moving forward with the social media marketing company, it does look as though they are still interested. The reluctance, at first, was quite pronounced, but even at the higher end of that price range, it still looks as though it could be quite a profitable opportunity over the longer term.
If one considers the next twelve months for the social media marketing network, it is quite a hefty valuation to have assigned the company. However, as an investment into the future and not into the short term, this could be a substantial chance to watch prices rise.
This is especially true because it is well known that the ads on Twitter have only barely touched on their full potential and that social media marketing is due to explode. Some in the industry have even predicted that Twitter may take Facebook’s position, next year, as the leader among the network giants.
That June 2012 social media marketing survey occurred just slightly before the IPO at Facebook. This most recent version of the survey has seen an increased percentage of respondents that claim to be using Facebook as a part of their advertising mix. That said, it continues to remain at a steady level greater than 80 percent. At the same time, the specific number who said that they are now advertising over the network has spiked significantly when compared to 15 months before.