Five Reasons To Invest in Twitter IPO
Today, Twitter, the social media platform most known for letting people put their business out in the street, put THEIR business out on the street—Wall Street that is.
Now, most of you reading this may not take this seriously, but the reality is this: Twitter has been the most powerful tool that the Black community has come across since the Underground Railroad. Yep, I said it.
And for its opening trade, Twitter did not climb to its $45.10 per stock prominence on its own accord. We may not have created the code that brought the technology to fruition, but African Americans helped give it divine purpose and the rest of the world followed suit in how we used it. It is our modern-day African drum.
For example, it was #BlackTwitter that spread the word about Trayvon Martin’s death pressuring Sanford police to investigate the circumstances further. Protestors used Twitter to coordinate logistics and assemble across the country. And it was a Twitter user who successfully campaigned to stop Juror B37’s book deal and keep her from profiting on the tragedy.
So, admit it, if millions of people make money on Twitter’s IPO (Initial Public Offering), and Blacks miss out on the payday, we are going to feel really silly considering that we use Twitter almost twice as much as Whites and 7 percent more than our Latino brothers and sisters, according to Pew research.
Here are five more reasons you should take advantage of the Twitter IPO:
1 – You Know You Need The Money.
An investment of $1,000 on Amazon stock in 1997 would be worth $240,000 today. The same amount down on Ebay in 1998 would be valued at $69,000 now, according to a chart prepared by SeekingAlpha.com. “Social currency and trending topics are great but ultimately, money talks,” says Sian Morson, founder of Kollective Mobile, a boutique firm that helps businesses and organizations build apps for iPhone, iPad, Blackberry, and Android devices.
2 –Twitter is on a Roll
The company has proved that its business model works and it seems time is on its side. Between June 2012 and June 2013, it generated about $450 million, and according to its IPO perspective, active users grew 45 percent from June 2012 to June 2013. However, if you invest in it, “It should not be a large part of your portfolio,” warns Ralph Baker, executive director of the New York Shock Exchange, a youth mentorship program which teaches kids investment management skills and competitive basketball skills. “Twitter is a high risk/high reward stock because the company has not generated a profit yet.”
3 – You Have the Expertise
Investing Rule #1: “You should invest in what you know,” says Baker, who authored Shock Exchange: How Inner-City Kids From Brooklyn Predicted the Great Recession and the Pain Ahead. “African Americans make up a disproportionate amount of active users on Twitter. We understand the product, the growth of it and the importance of it.”
4 – We Need to Make Building Black Wealth A Priority
“#BlackTwitterFund is a better hashtag than #PaulasBestDishes,” says Morson, referring to the meme where people on #BlackTwitter imagined racist dishes the chef might enjoy. “How much more awesome would it be if we pooled our resources to invest in Twitter so that we can contribute to the overall direction of the company?” Blacks are half as likely as the general population to own investment products, such as IRAs, mutual funds, stocks and bonds, according to a study commissioned by Prudential Insurance last summer. “Investing in any company, not just Twitter, is the first step in building wealth,” says Morson.
5 – You Deserve Real Appreciation From The Brands You Use.
As soon as you pull off the lot, that new Mercedes Benz will lose more value than Paula Deen’s Cookware line did last summer. “Those Louboutins won’t appreciate in value either,” says Morson. Tons of research findings show that Blacks are the most brand loyal consumers compared to other ethnicities. Twitter depends on brands to advertise so that they can generate revenue, and the brands depend on Twitter to deliver on active users like you.
If everyone is getting a financial benefit out of this IPO, why not you, too?