In the shadow of the disastrous Facebook IPO that took place a mere 18 months ago, Twitter avoided the major catastrophes that plagued the social media giant and managed to end on a high note.
Online PR News – 14-November-2013 – Limassol/Cyprus – Twitter’s Initial Public Offering (IPO) took place on Thursday, November 7, 2013, to the anticipation of many wanting to get in on a piece of the social media action. While many investors looked forward to the opportunity, the shadow of Facebook’s ill-fated IPO hovered over the event, causing those who actively participate in the market via options trading and binary training to carefully consider their decisions before placing any orders.
The Facebook IPO involved several factors that were not present for the Twitter IPO. For one thing, Facebook chose a Friday on which to begin trading, and it picked the tech-popular NASDAQ as its venue of choice. Trading was scheduled to begin at 11am, as is typical for NASDAQ IPOs. It seemed the IPO was lame at the gate, however, and things did not get rolling until 30 minutes later. Then, glitches emerged that caused a number of problems with the orders that were rolling in. All in all, it ended up creating approximately $500 million in losses for those firms participating in the IPO, whether buying and selling or through participating in options trading.
It was with those factors in mind that traders approached the Twitter IPO, certain that the pall cast by Facebook would have a significant impact on binary trading for the day. Fortunately, investors turned out to be pleasantly surprised, most likely due to the key differences between the Twitter IPO and Facebook’s.
For one thing, Twitter did not select the NASDAQ as its market of choice. Instead, the microblogging company decided to go with the New York Stock Exchange. This choice is quite a deviation from Silicon Valley tradition, as most tech companies pick the NASDAQ. This move surprised many of the investors who participate in options trading, but given the technical glitches the NASDAQ has been experiencing lately, it seems to have been a wise move.
Aside from its choice in venue, Twitter also avoided the need to have bankers jump in and rescue its stock price from plummeting. It closed 73% above its initial $26.00 IPO price on its first day of trading. That kind of upswing is great for binary trading, though it also speaks for long-term potential as they specifically sought long-term funds to hold the stock to create a stable foundation and avoid copious sell-offs right out of the gate.
Twitter also stands a greater chance of benefiting from the influx of capital it received from the IPO. It is starting the process much earlier in its development than Facebook did, meaning that it can create opportunities much sooner for those who engage in binary trading to take advantage of its growth from its comparably fledgling status.
In addition to these factors, Twitter kept its IPO purposefully small. The company ended up valuing itself at between $14 billion and $18 billion, whereas Facebook was valued at over $100 billion. Additionally, the $1.8 billion that Twitter raised is staying in the company, as insiders have decided to avoid selling off their shares. That means Twitter has quite a stockpile to work with in re-investing in the company and adding value, creating many opportunities for profit with future options trading and binary trading.
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