Poll: Public Sceptical Over Twitter Float

Written By Unknown on Senin, 04 November 2013 | 18.56

Twitter faces scepticism from potential investors and the broader public ahead of its initial public offering this week, according to a new poll.

The social media company is due to release its flotation price late on Wednesday ahead of trading starting on the New York Stock exchange on Thursday.

Some 36% of Americans say buying stock in the seven-year-old messaging service would be a good investment, while 47% disagree.

In May last year, ahead of Facebook's initial public offering (IPO), 51% of Americans said Facebook would be a good investment. Just 31% did not agree.

The new poll found a high number of young people are doubtful of the Twitter float.

Commissioned by AP/CNBC, it found 52% of Americans aged 18 to 34 said investing in Twitter's stock is not a good idea.

It also found that although one in five Americans say they have a Twitter account nearly a third of respondents - 29% - said they never send a tweet.

San Francisco-based Twitter plans to raise as much as $1.6bn (£1bn) in the launch on the New York Stock Exchange.

The transaction values Twitter at as much as $12.5bn (£7.8bn) - about 12% of Facebook's $104bn (£65bn) market value when it went public on the rival Nasdaq exchange.

Two weekends ago the NYSE did a 'test float' to help avoid a report of Facebook's glitch-filled launch.

Twitter, which intends to sell 70 million shares at between $17 and $20 each, will be holding the biggest Internet IPO since Facebook, which sold a much larger 421 million shares at $38 each.

Twitter has not turned a profit since its launch and its future depends on advertisements as a primary source of income.

The company mainly sells three types of adverts: promoted tweets, promoted accounts and promoted trends.

A company like Starbucks, for instance, can pay Twitter to promote a single tweet or it can pay the company to ask users to follow its account.


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