Twitter IPO – Success or Failure?

There was a lot of concern leading up to the Twitter IPO about whether or not it would face technical trading issues a la Facebook. During NYSE’s pretesting, there were a few glitches that caused some worry but on D-Day, it IPO’d and investors were able to get their TWTR fix on. Success!

Well not really. I’m not sure that you can call a company that has been allotted a 22 BILLION (with a B!) value despite never having made a profit a success.

What’s even scarier is the general decrease in search interest for the micro-blogging site. 2013 was the first year since Twitter’s launch where its overall search volume trend was negative. Even with the search volume blip on IPO week, it was nowhere near the volumes seen in the beginning of 2013 or even late 2012. Over the course of 7 years, this decrease may seem like a negligible blip, but this may be the early warning of bad things to come. A continuation of this trend surely would not bode well for the company’s fortunes. See chart below:

Twitter_SearchTrend
Twitter_SearchTrend

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