Twitter is going public on Thursday and, as you might have guessed, experts can’t say if it will be a hit, a failure or something in between.
Here’s why it’s hard for them to say: it’s the most expensive initial public offering (IPO) in U.S. history, relative to its revenue. So the stock appears overpriced.
Here are some numbers that give you an idea what could happen to your Twitter stock if everything goes right:
$26 per share: that will be the cost of Twitter stock at the initial offering
$85 per share: what Google stock was worth at launch
$1,012 per share: what Google stock is worth today
Here’s what the looks like visually:
$18.3 billion: the market valuation of Twitter
$23 billion: the market valuation of Google in 2004, when it went public
$338 billion: the market valuation of Google today
Now you just have to ask yourself if Twitter has the potential for growth and development that Google had, or if it’s more of a one-trick pony.
Hear more about the Twitter IPO Thursday on “AMERICA with Jorge Ramos.”