Is Twitter's Secondary Offering in the Works?

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Nov. 8 (Bloomberg) -- In today's Triple Threat, Bloomberg's Cory Johnson, Pivotal Research's Brian Wieser and Stutland Volatility Group's Dan Deming discuss Twitter's IPO. They speak with Trish Regan on Bloomberg Television's "Street Smart." (Source: Bloomberg)

Today in the $40's, you are probably pretty happy.

What are we talking about six months out?

Will it hold up at these levels?

The shares will increase greatly over time.

Twitter managed this offering to get a pop in the offering does they knew it was going to be popular, week -- in the offering, because they knew it was going to be popular, we can assume.

The twitter users check their timelines at least 7 1./2 times per day on average.

They helped boost the demand by putting out only 10% of shares.

We don't know if or when they are going to do a secondary offering, but we can see that the secondary offerings have been much larger than the initial offerings of stock.

When you look at a company like zynga, when zynga came out with their initial offering, they raised $110 million.

Less than six months later, they raised $516 million in an offering that was in some ways goosed by the limited offering.

We have seen a lot of companies do that.

Twitter might do that very thing, come out with a second offering.

What do you think of the stock price?

Do you think that the bankers made a mistake, that twitter might of made a mistake coming out at $26 per share?

-- might have made a mistake coming out at $26 per share?

In facebook's case, their strategy may have been to make sure they left no money on the table.

In that case, that was successful.

Twitter may have said let's make sure we leave some money on the table, let's make sure everyone is feeling really good about it.

If they accomplished what they set out to do, what's to worry about?

I don't think that's a problem.

At least they did not have the other problem.

Do you think they were guarding against the idea the stock could go down as it debuted?

Facebook fraction -- fractured.

Facebook was more an anomaly than anything else.

It is usually the case that a company wants to make sure they have left something on the table to create a positive sense for the stock in the aftermarket.

They left it long in this case.

That is so hard to identify.

You cannot pick specifically.

I came out with a price target equivalent to $29, $30, and people said i had too high and number.

-- too high a number.

What are people able to do as a new issuance comes to market?

Basically, right now, they are looking for ways to hedge some of their exposure.

The anticipation, what is trending is the anticipation for the listing of options.

It appears it will take place next friday.

Twitter will meet all the requirements.

It looks like we will have trading options on twitter next friday.

As we look back at facebook, we saw 360,000 options trade that first day.

I think we will see some pretty decent volume in twitter as well as they roll out those options next friday.

What i'm looking for is to see where the big activity will be . is there going to be a big call -- there could be some long positions further out in the cycles moving into next summer.

Look at the options volume in that first week of trading.

Thanks to the whole team.

We are here with richard

This text has been automatically generated. It may not be 100% accurate.


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