Twitter IPO sparks speculation on who could follow
"For technology executives weighing market flotations for Silicon Valley startups, this week's gangbusters Twitter Inc initial public offering sent a powerful signal: full speed ahead.
About a dozen private companies are valued at more than $1 billion (624 million pounds), and many of them have already been holding informal talks with bankers. Now, many - including Box, Square and Airbnb - are likely to accelerate their IPO plans, according to venture capitalists.
File-sharing company Box picked Morgan Stanley, Credit Suisse and JP Morgan to lead its IPO, Reuters reported Friday. The company has been valued at more than $1.2 billion by private venture capital investors, but it remains unclear whether it is profitable.
Twitter's lack of profits proved to be no obstacle to the micro-blogging site raising as much as $2.1 billion in its IPO. Its current share price of around $41 gives it a market value north of $22 billion.
That opens the door for other big-name private companies including Square, the payments company founded by Twitter co-founder Jack Dorsey, which has begun exploring the possibility of an IPO next year, according to the Wall Street Journal. Profits are not expected until 2015. Square declined to comment".
Source: Reuters
The only comment I would do to this article is that we shouldn't be surprised with this irrational exhuberance,when real interest rates are on negative territory,it is not going to be the last "gold rush". It is always very appropiate to remember Warren's Buffet motto "Be fearful when others are greedy, and be greedy when others are fearful"
