Last year had me very excited about the promised Facebook (FB) IPO and it did prove to be as good as I had hoped. An extremely interesting IPO (with Nasdaq proving unable to handle trading), a major drop that gave me the opportunity to get in on the action in a trade that will hopefully pay off big time. Also, even though I have not done it yet, I will certainly be trading Facebook as part of my long & short tech stock strategy.
There Is No Other Facebook But…
There is no stock that will start trading soon that has anywhere near the hype we saw for Facebook. That being said, there are several interesting ones that I’d be interested investing in or trading on.. here are a few:
–Dropbox: rumored IPO perhaps as early as this year – it’s a service I use, a growing company
–Evernote: It’s a product that users love and that I do use to some extent but I’m not sure how big its business could get
–Foursquare: One of the primary players in the exploding “local” market
–Pinterest: One of the bigger social networks around, my wife is a big fan but I don’t know that much about it. As it gets closer to an IPO, I’ll certainly read more
–Quora: I absolutely love this service, it’s the best Q&A site on the web, was started by a former Facebook early employee and while the growth has been slower than hoped for, I’d love to get a chance to see more info and perhaps invest.
–Spotify: I’ve written about my doubts in any company making money with online music, mostly when discussing Pandora. But having Spotify turn public would provide some interesting trading opportunities.
There is not a single name that comes close to Twitter. I used to be very skeptical about Twitter being able to generate much in terms of revenues but they do seem to have turned things around quite a bit. I’m not as excited about the company as I am about Facebook because there are not as many directions that the company could venture into. That being said, Twitter has an incredibly strong brand, a unique product that has been able to become mainstream. That has value. In terms of how much Twitter is worth.. it is currently trading at a $9B valuation on secondary markets. This week we had very interesting takes on that valuation by:
I certainly think it’s worth looking into both in order to start getting an opinion. Of course, that will be a challenge until we get some more official numbers. I would probably not buy Twitter at current valuations but I’d love to see the company become public soon so that I can start trading it..