#Twitter and Other Internet IPO’s

IPO’s can generate as much excitement as a Hollywood movie premier but can sometimes disappoint too.  Not so with Twitter (TWTR).  So far it has proved to be much more than a bad Will Ferrell movie. But over time every stock has a story to tell and Twitter will too.

Do you remember some of those much anticipated internet IPO’s over the last few years?  Below is the Initial Public Offering price compared to today’s closing stock price.

                                     IPO $    Todays $
Facebook (FB)                38            46.23
Groupon (GRPN)           20              9.12
Linkedin (LNKD)            45           220.25
Pandora (P)                   16            29.23
Twitter (TWTR)             26            41
Yelp (YELP)                   15             62.39
Zynga (ZNGA)               10              4.38

Groupon and Zynga are trading below their initial offering price but the rest have done well over time. You may remember networking giant Linkedin doubled on its first day of trading only to fall significantly a few months later. You have to be a contrarian when trading options. Having a forecast on the stock with close attention to time and volatility may allow you to take advantage of the different daily, weekly or monthly outcomes.