Oddsmakers Way Off on Twitter IPO
PaddyPower.com, the Irish bookmaker, had been offering odds of Twitter’s IPO coming in between a value of $15 billion and $20 billion. That was the favorite one month ago and it appears they may have been a little bit off.
Just 30 days ago, initial public offering experts were floating a market capitalisation for Twitter of around $10 billion
The social media giant said Monday morning it had raised the price range for its I.P.O. to $23 to $25, signaling the company’s bullish outlook ahead of its trading debut on Thursday.
When PaddyPower began offering odds early in October, Twitter was not expected to begin public trading for several months down the road.
The Wall Street Journal noted that the price increase comes after a round of bullish reports from Wall Street in the last few weeks. The paper also reported that a senior research analyst at Pivotal Research actually set the target price at $29 a share for Twitter, based on its long-term revenue potential.
- Aaron Goldstein, Gambling911.com
