Most of us know and or use Twitter. I am one of those people who have a twitter account but haven’t spent much time on the site to build it. Twitter along with Facebook has become an important part of how we relate and communicate with one another. There is word that Twitter is going public which could start another frenzy. The Initial Public Offering or IPO of Facebook was crazy with a lot of hype. Use the cautionary tale of Facebook to stay grounded. Remember that just because the IPO of a stock starts high it does not mean it will stay that way (Facebook started at $38 and is now in the 20s).
So what should you do if Twitter indeed goes public? You need to ask yourself some questions before deciding if you want to buy it. You also have to think about timing. So here are some questions;
1. Do you know everything about Twitter?
3. Do you have an emergency fund in case of significant loses?
4. Does Twitter fit into your long-term investment goals?
Keep in mind that just because you decide to buy Twitter it doesn’t mean that you can’t wait until the price settles.
If I was to buy Twitter stock I wouldn’t do it immediately, rather I would wait for a week or two before buying. Twitter is a company worth looking at but it’s what I call a fashion stock. I say this because it’s exposed to the emotions of people that can be like a roller coaster. Twitter is not something we need to continue living like food, water, medicine if we get sick. It doesn’t produce anything physical of value like gold, silver, coal, oil, cars and the list goes on. There are a lot of questions to ask yourself before buying so that you are informed, prepared and have a vision.