Most significant result seem to be 1600 new millionaires and increased tax money for US government. And Banana Republic got nice attention for its marketing campaign.
Share price was bumped up to $26, but that was not enough for audience, which valued it up to $50 during first day. Now stock is still trading above $40. No dividend or is it coming later? With normal stock dividend % varying between 2-4% that would give 0.8-1.6. This sounds heavy for company having EPS -0.199! P/E is around -1107…..
So my conclusion is that many people feel it valuable to own part of this company, without actually having clue why it is worthwhile investing. Luckily for them Twitter has funds to figure out the future proof business model. Their cash flow has been negative so far. Hopefully next year will be different.
Over all the merchandise, i see i don’t feel attractive, maybe because i don’t understand, but that is the rule i use: “If you don’t understand how money flows trough your investment target, don’t invest.” Still hoping all the best to those who decided to choose otherwise. Some already got the value increase they earned with their risky bet, so congrats to all of them.