Facebook (Nasdaq: FB) stock still has a lot to prove if it wants to win over value investors, but it took a big step in that direction Wednesday with the announcement of its addition to both the S&P 500 and S&P 100 Indexes.
Thursday, micro-blogging site Twitter (NYSE: TWTR) will debut as a publicly traded company on Wall Street’s Big Board. Many analysts – including those at Money Morning – will steer clear of the hotly anticipated IPO – but TWTR has had no trouble generating investor interest.
The San Francisco-based company even increased its price range Monday on roughly 70 million shares from $17 to $20 per share to $23 to $25. The move values the company at a whopping $13.9 billion, or 26 times its revenue over the last 12 months. Twitter hopes to raise as much as $1.75 billion.
I’ve made no bones about my feelings for Facebook Inc (Nasdaq: FB) – that it’s overrated, a flash in the pan, and ultimately doomed.
Yes, the company just knocked the ball off earnings yesterday. And the stock is up 4.86% as I write this. But I really couldn’t care less what happens in the short term. I still can’t get behind its long-term potential.
Facebook’s anemic 2012 initial public offering has gone down in history as one of the great IPO flops. Twitter, it seems, is eager to avoid repeating Mark Zuckerberg’s mistake, with the Twitter IPO price set at a modest $17 to $20 per share.
It used to be that companies went public after achieving a modicum of success. There were business models, calculations, and plans, all based on real results and proven success.
Over the last month we’ve seen Facebook’s (Nasdaq: FB) dramatic share price rebound, Twitter’s stock IPO announcement, and LinkedIn (NYSE: LNKD) stock on fire, but have you ever wondered… how do social media companies make money?
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
U.S. equities followed Europe’s lead and headed higher when the stock market today (Monday) opened.
Wall Street’s mood was lifted after Enrico Letta was sworn in as Italy’s prime minister, ending weeks of political gridlock in the ailing European nation. The news also propelled Italian stocks up more than 1%.
Shortly before noon, the Dow Jones Industrial Average was up 68.55 points, or 0.47%, at 14,781.10. The Standard and Poor’s 500 Index was higher by 8.59, or 0.54%, at 1,590.83. The Nasdaq climbed 26.72, or 0.81% at 3,305.98.
Another lift to the stock market today came from a report on March consumer spending. The read was 2%, much better than and 0.1% rise economists had expected and up from a 0.7% gain in February and a 0.4% advance in January.
With just two more trading sessions left in the month, U.S. stocks are set to end April with gains. That would mark the fourth consecutive positive month for equities.
But it’s about that time when the familiar spring swoon weighs on stocks in the near term.
According to data from Bespoke Investment Group, over the past 30 years, an investor who bought the S&P 500 Index every Oct. 31 and sold the following April 30 would have reaped a 898% gain. In contrast, buying every April 30 and selling every late October would have returned just 56%.
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
This is a syndicated repost published with the permission of Money Morning. To view original, click here. Opinions herein are not those of the Wall Street…
