Friday 1 November 2013

Big Wall Street pre-IPO interest in Twitter's IPO. Expect the market manipulation that follows.

Twitter's pre-IPO shares are already oversubscribed as their investor roadshows come to an end.

So it has attracted really strong Wall Street investor interest before it goes public in November (7th?). Which probably shows, as everyone said at the time, that the shares were underpriced (deliberately?) at 17-20 usd a share and selling 70 million of them, raising about a billion usd. 

So all this means is that stockbrokers and investors see an opportunity to make money from Twitter, for themselves.

Those Stockbrokers (supposedly on behalf of clients, but they're not) that have committed to the stock from Wall Street, will now start sending out 'buy' recommendations, wait and see, to cover their own position. You're also hearing reports from Wall Street of potential upsides of +45% and target pricing of 29 dollars. Real positive PR follows pre-IPO activity like this to boost the price.

What they're doing, is convincing people to buy and thereby inflating the price and thereby making a profit for themselves. They'll talk it up. Watch it.

It's market manipulation, that's all, as they try to stir up enough interest to give themselves a gain. These boys will be offloading asap - same day probably - whilst encouraging longer term stayers - like you.

So now Twitter will probably price itself at the higher end of the 20 Dollar range and/or sell more than 70 million shares. So the pre-IPO investors will get an immediate return on opening day. 

If you don't understand the market and the way it is constantly manipulated, stay a millions miles away. These people make money off your lack of knowledge and they actually call you 'mugs'. They are in it for themselves.

Either way, it looks like a real 'dot com' IPO. Already showing this level of interest, means it's going upwards on the day. But for how long? 

Or it's another complete Facebook IPO sham.

(UPDATE - Twitter shares will be priced between 23 and 25 Dollars when it floats on the NYSE next Thursday) 

Thursday 31 October 2013

Flights will allow devices on Take-off and Landings. Delta already have started.

You'll soon be able to use your Ipad, Ipod, Mobile, Kindle and any electronic device for take offs and landings on planes according to Mashable.

Although you won't be able to make calls for the duration ('airplane mode' still applies) and the rule doesn't apply to heavier items such as laptops which still have to remain off.

Whilst this week's FAA announcement (the airline industry ruling body) applies to the USA, it's almost automatic it will be followed across Europe. Delta Airlines have said they'll introduce it from Nov 1.

It follows an industry panel where they've established that the radio interference of such devices is well within tolerable limits for modern aircraft. Each airline will do some tests on their own fleets but it's good news for Mums and Dads to try to keep the kids occupied for the whole flight. And in some ways, that has benefits to cabin crew too.

For those of us who don't like flying (me!), it's great to keep occupied as the plane takes off and there's no doubt, that in-flight phone calls are coming - but Airlines see those as a potential revenue source.

I can almost hear the tweets already. 
"Delighted to be one of the first to....blah, blah, blah".

Wednesday 30 October 2013

LinkedIn has more users than Twitter. 259 million monthly active users. But it's still losing money.

LinkedIn announced this week that it has 259 million monthly active users.

That's significant growth, up nearly 20 million quarter on quarter and up from 187 million last year. So more people are using LinkedIn actively.

Firstly, it may reflect the general downturn as businesspeople have more time on their hands and secondly, they're looking for better business opportunities.

However, it may also reflect that LinkedIn is more popular and it's just natural, organic growth. It puts LinkedIn ahead of Twitter (230 million active monthly users). That astonishes me anyway.

Even more astonishing is that LinkedIn lags behind the dreadful Google+ (300 million active monthly users) which I can only think is because most of us are forced into Google+. It's hard to find one deliberate active user that I know anyway who actively uses Google+. 

LinkedIn posted strong revenues too of 393 million usd although Q4 forecasts were lower than expected. 62% of the revenue is still US based so LinkedIn needs to bring in more revenue from the 200+ countries in which it operates.

Those countries are only accounting for 38% of revenue combined. An opportunity?

That said, it's still good revenue, still strong.

A quarterly loss of over 3 million usd, isn't and I just can't understand how, like Amazon, these companies can't turn profits on such extraordinarily high revenues?

And if LinkedIn continues to grow its active members in the way that it clearly is, revenue uplifts must follow. They have a core market of businesspeople which in itself, has a premium value outside of just "the numbers" say compared to a Twitter.

So in a way, it's a premium Social Network.
A growing premium Social Network.
That needs to stop losing money.

Tuesday 29 October 2013

Social Media is going niche. Nextdoor raises another 60 million on top of the 40 million it has. Lovely idea.

The future of Social networking is niche.

By that I mean, that people will not just want broad Social Media networks where 'one size fits all' but rather networks that are full of like minded people. People interested in the same sports or same team; the same artists or bands; the same hobbies or interests.

Of course niche means smaller. So your reach for such a social media site is to a narrower base of people - but in global terms, that can still be in the millions. 

For example a Social network dedicated to Soccer or American Football or U2 or Baking (on which Pinterest was largely built by the way). 

Nextdoor, is one of those and to prove it, they've just raised 60 million usd, having previously raised 40 million usd. Their slogan is, 'Your neighbourhood online'. It's Social Media for neighbours.

It's on the go for two years.

Nextdoor is a Social network for neighbourhoods. A chance to meet people who live near you online and perhaps offer them local services like babysitting, or just to engender goodwill. Perhaps just looking out for a neighbour or alerting them to things that are going on. Helping to create community.

Most of us don't know our extended neighbours and Nextdoor helps us to do that or at least, those of us that want to. It also allows local trade, never a bad thing, to generally make our lifestyles better.

Nextdoor as yet, doesn't generate revenue but clearly as the network develops, revenue opportunities such as local advertising or local trading, will. 

Not a bad idea at all.
Social Media is becoming niche.