Well, based on Twitter IPO last week at $26 per share, I’d rather have the stock instead of cash. The company has a valuation of nearly $25B. Yes, billion. 900 shares that will at least hold if not go up in value? Yes, please!
Since our use of social networking sites nets big profits to tech companies we should consider the intrinsic value of a Tweet, a Like, a Pin, a picture on Instagram and others. Time magazine has an interactive infographic where you can plug in any public account to calculate activity on Twitter and what value it brings.
A high percentage of its user base are…surprise….blacks…who account for as much as 25% of Tweeters. I’ve stuck my neck out before urging people to start companies, align partnerships and OWN something instead of making other people rich. Would a small group of investment funds pour their money into businesses that were started by those outside the usual bubble in Silicon Valley? Or perhaps the better question is, if you want to launch something is that the only place you should go for money and mentors?
Of course Vivek Wahdwa begs to differ on certain financial matters and thinks Twitter is over-priced. Admittedly, tech stocks have gone bust before, but how many “mom and pop main street” investors are out there looking at tech stocks? Many of these companies are inflated, but some would say the entire stock market is set up as a global ponzi scheme where you get in early and cash out swiftly. We should check back in three years to see what happened with the stock at various social networks sites like Facebook and Twitter. Yet, some companies have a longevity that might balance such risks out in the end. Do your research, diversify and pay attention.