IPO�s & Tech Companies

It was recently announced that Twitter will soon be launching an IPO. To most in the tech industry this was not news, however it was news to most Twitter users.

So far the response about Twitter going public has been mainly positive, but there have been a few negative comments. Those who responded positively to Twitter going public feel that an IPO is long overdue. This is because Twitter has been cash positive for quite a few years, and it should have no problems attracting investors. On the other hand, those who have responded negatively to the news about Twitter going public are concerned that launching an IPO will hurt the company. One case study example they use is Facebook.

There are many people today who feel that going public really hurt Facebook as a company. Prior to the launch of their IPO, Facebook was simply viewed as a cool social media site. Although the site generates millions of viewers, it is still not viewed as a company you would want to invest in. This is one of the reasons why Facebook CEO Mark Zuckerburg has been working hard to change his company�s image. Part of this involves making innovative updates to Facebook�s online platform, which Zuckerburg is hoping will help to attract advertisers and investors.

Although Twitter and Facebook are both successful tech companies, many industry analysts feel that Twitter is viewed as being a more viable technology business. Some of this has to do with Twitter�s executive leadership. Twitter CEO Jack Dorsey is usually taken more seriously as a tech executive than Mark Zuckerburg. In addition, there are also many who feel that Facebook has been imitating Twitter�s innovative upgrades and business model -- which sends a signal that Facebook�s team lacks innovation and leadership.

Whether an IPO launch will hurt or help Twitter remains to be seem. From an outside perspective it appears that the company is in a good position to go public. Industry insiders estimate that the IPO will be received and that Twitter stock will do very well.

In addition to a Twitter IPO, there have been rumors that Jack Dorsey�s other company, Square, will also be going public in the very near future. In a recent interview, a tech reporter asked Dorsey point blank if he was preparing Square for an IPO. Although Dorsey did not exactly say yes, he didn�t exactly say no either. As a matter of fact he seemed to be dancing all around the question. A good explanation for this could be that Dorsey wants to get through the Twitter IPO first. After Twitter goes public, there will likely be other tech IPO announcements next year.

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