Everything seemed to just fall apart and all that was left was a crowd of red faces – both embarrassment on the part of Facebook and anger from all the people who had invested in shares who saw them dramatically nose-dive.
Obviously with the stock market, there are always ups and downs which are expected. Sometimes such theatrical falls are anticipated and sometimes they are not. With Facebook, there was always a hint of failure from a lot of cynics even from the start, something which no company wants to ever feel - it’s the true “tripping over on the red carpet while the world’s media looks on” moment for businesses.
This is perhaps why Twitter decided to have a test-run. Yes a test-run, you heard it right.
| . Last Saturday, the NYSE (New York Stock Exchange) decided to run an IPO (Initial Public Offering) test to see if their systems could cope with the huge expected influx of traffic. This is something which had been done previously with Nasdaq & the Facebook launch however they did this on a much smaller scale. When Nasdaq was testing the Facebook launch, they only allowed 40K orders to come through the system however on the launch date close to 500K orders were put through even before the IPO opened, an issue with caused some purchasers to not receive confirmation slips which then caused chaos as people wondered if their order had even gone through. A huge fine for Nasdaq resulted from the US Securities & Exchange Commission. It was truly the beginning of the end…
With the nail firmly hammered into the Nasdaq/Facebook coffin, Twitter decided that by trying the NYSE that things may work better (or just simply work), a decision which I’m sure made a lot of senior officials smile at NYSE in the battle to top the listings.
With the recent tests haven been completed & deemed a success and Twitter’s announcement that they’re selling a lot less shares (70 million compared to 421 million which Facebook released) rumoured between $17-$20 each, all eyes will be on the news on the 6th November when Twitter announce their official prices. Will it be a flop again this time or have better strategies been put in place? Who knows but the bigger question will be, are you buying?