Twitter IPO news today generated buzz
Although the “#TwitterIPO” hashtag didn’t trend, tech circles and investor circles alike were abuzz today with Twitter’s going public and joining the ranks of Facebook. Opening on the New York Stock Exchange under the stock symbol “TWTR,” the company set their price at $26 yesterday, and opened at $45.10 and a $31.8 billion valuation, hitting a $50.08 high on its first day, and closing at $45.87.
The Twitter IPO news generated much needed cash for Twitter (they have investors that actually expect their money back), but more interestingly, it generated a great deal of trash talk, and not from Facebook, and not completely toward Twitter itself, either.
Trash talk from NYSE
When Facebook went public, they chose to file under the NASDAQ which traditionally attracts tech companies, but the technology behind the exchange failed miserably and the launch went down as one of the most screwed up in history. The NYSE operates differently, with more human oversight and interaction, so according to the SeattlePI, the day was filled with trash talk by the NYSE and NYSE groupies who assert their method is superior.
The bottom line is that Twitter’s choice may be reflective of other tech stocks’ choice of where they are indexed, which is ironic given the fact that NASDAQ relies on technology, so you would think tech companies would be attracted to that method. But if the technology isn’t reliable (or umm, fail whales), alternatives begin looking attractive.
Economist trashes Mashable, others
Renowned economist, Barry Ritholtz took Mashable, Statista, and MSN to task for their use of a graphic that he calls “actively misleading,” warning investors against graphics of this nature (seen below):
Click to enlarge
Ritholtz urges the graphic creators, “when describing the process of going public, do not hand-select the best tech IPOs of the past 20 years to use as proof of how awesome all tech IPOs themselves are.” He warns against investing based on graphics like this that don’t take into account that no one knew that Amazon, for example, would blow up, or that it’s been trading for a much longer time period than others.
He notes he is a prolific Twitter user and is “constructive” about the stock’s initial pricing, but “cannot condone the use of horrific infographics like the one above.”
But this wasn’t the only crap graphic floating around, trust us. Take for example MediaBistro’s AllTwitter blog said they’d answer your five burning questions about the Twitter IPO, and lazily featured a graphic outlining what an IPO is, which isn’t Twitter specific and condescendingly oversimplifies a truly complex process, failing to mention any of the recent changes to the filing process.
Trash talk from The Atlantic (our favorite trash talk of the day)
Above all, our favorite trash talk was The Atlantic’s take on the investment, which has and will continue to draw amateur (retail) investors, which is common during what they call “splashy IPOs of hugely popular, but reliably unprofitable, companies, whose economic future is utterly uncertain.” Nice.
“After all,” the publication continues, “the only reason to buy a stock is if you think it’s not priced properly, which implies that you know more than everybody else. But what, exactly, could you possibly know about Twitter that other people don’t?”
For those considering buying Twitter stock, The Atlantic made a flow chart for you, capping off our highlights of the diverse trash talking corners of the world:
Twitter to start charging users? Here’s what you need to know
(SOCIAL MEDIA) Social media is trending toward the subscription based model, especially as the pandemic pushes ad revenue down. What does this mean for Twitter users?
In an attempt to become less dependent on advertising, Twitter Inc. announced that it will be considering developing a subscription product, as well as other paid options. Here’s the scoop:
- The ideas for paid Twitter that are being tossed around include tipping creators, the ability to pay users you follow for exclusive content, charging for use of the TweetDeck, features like “undo send”, and profile customization options and more.
- While Twitter has thought about moving towards paid for years, the pandemic has pushed them to do it – plus activist investors want to see accelerated growth.
- The majority of Twitter’s revenue comes from targeted ads, though Twitter’s ad market is significantly smaller than Facebook and other competitors.
- The platform’s user base in the U.S. is its most valuable market, and that market is plateauing – essentially, Twitter can’t depend on new American users joining to make money anymore.
- The company tried user “tips” in the past with its live video service Periscope (RIP), which has now become a popular business model for other companies – and which we will most likely see again with paid Twitter.
- And yes, they will ALWAYS take a cut of any money being poured into the app, no matter who it’s intended for.
This announcement comes at a time where other social media platforms, such as TikTok and Clubhouse, are also moving towards paid options.
My hot take: Is it important – especially during a pandemic – to make sure that creators are receiving fair compensation for the content that we as users consume? Yes, 100%. Pay people for their work. And in the realm of social media, pictures, memes, and opinions are in fact work. Don’t get it twisted.
Does this shift also symbolize a deviation from the unpaid, egalitarian social media that we’ve all learned to use, consume, and love over the last decade? It sure does.
My irritation stems not from the fact that creators will probably see more return on their work in the future. Or on the principal of free social media for all. It stems from sheer greediness of the social media giants. Facebook, Twitter, and their counterparts are already filthy rich. Like, dumb rich. And guess what: Even though Twitter has been free so far, it’s creators and users alike that have been generating wealth for the company.
So why do they want even more now?
TikTok enters the e-commerce space, ready to compete with Zuckerberg?
(SOCIAL MEDIA) Setting up social media for e-commerce isn’t an uncommon practice, but for TikTok this means the next step competing with Facebook and Instagram.
Adding e-commerce offerings to social media platforms isn’t anything new. However, TikTok, which is owned by the Chinese firm ByteDance, is rolling out some new e-commerce features that will place the social video app in direct competition with Mark Zuckerberg’s Facebook and Instagram.
According to a Financial Times report, TikTok’s new features will allow the platform to create and expand its e-commerce service in the U.S. The new features will allow TikTok’s popular users to monetize their content. These users will be able to promote and sell products by sharing product links in their content. In return, TikTok will profit from the sales by earning a commission.
Among the features included is “live-streamed” shopping. In this mobile phone shopping channel, users can purchase products by tapping on products during a user’s live demo. Also, TikTok plans on releasing a feature that will allow brands to display their product catalogs.
Currently, Facebook has expanded into the e-commerce space through its Facebook Marketplace. In May 2020, it launched Facebook Shops that allows businesses to turn their Facebook and Instagram stories into online stores.
But, Facebook hasn’t had too much luck in keeping up with the video platform in other areas. In 2018, the social media giant launched Lasso, its short-form video app. But the company’s TikTok clone didn’t last too long. Last year, Facebook said bye-bye to Lasso and shut it down.
Instagram is trying to compete with TikTok by launching Instagram Reels. This feature allows users to share short videos just like TikTok, but the future of Reels isn’t set in stone yet. By the looks of it, videos on Reels are mainly reposts of video content posted on TikTok.
There is no word on when the features will roll out to influencers on TikTok, but according to the Financial Times report, the social media app’s new features have already been viewed by some people.
TikTok has a large audience that continues to grow. By providing monetization tools in its platform, TikTok believes its new tools will put it ahead of Facebook in the e-commerce game, and help maintain that audience.
Your favorite Clubhouse creators can now ask for your financial support
(SOCIAL MEDIA) Clubhouse just secured new funding – what it means for creators and users of the latest quarantine-based social media darling.
Clubhouse – the live-voice chat app that has been taking the quarantined world by storm – has recently announced that it has raised new funding in a Series B round, led by Andreessen Horowitz, the venture capital firm in Silicon Valley.
The app confirms that new funding means compensation for creators; much like the influencers on TikTok and YouTube, now Clubhouse creators will be able to utilize features such as subscriptions, tipping, and ticket sales to monetize their content.
To encourage emerging Clubhouse creators and invite new voices, funding round will also support a promising “Creator Grant Program”.
On the surface, Clubhouse is undoubtedly cool. The invite-only, celebrity-filled niche chatrooms feel utopic for any opinionated individual – or anyone that just likes to listen. At its best, Clubhouse brings to mind collaborative campfire chats, heated lecture-hall debates or informative PD sessions. I’ll be the first to admit, I’m actually obsessed.
And now with its new round, the video chatroom app will not only appear cool but also act as a helpful steppingstone to popular and emerging creators alike. “Creators are the lifeblood of Clubhouse,” said Paul & Rohan, the app’s creators, “and we want to make sure that all of the amazing people who host conversations for others are getting recognized for their contributions.”
Helping creators get paid for their labor in 2021 is a cause that we should 100% get behind, especially if we’re consuming their content.
Over the next few months, Clubhouse will be prototyping their tipping, tickets and subscriptions – think a system akin to Patreon, but built directly into the app.
A feature unique to the app – tickets – will offer individuals and organizations the chance to hold formal discussions and events while charging an admission. Elite Clubhouse rooms? I wonder if I can get a Clubhouse press pass.
Additionally, Clubhouse has announced plans for Android development (the app has only been available to Apple users so far). They are also working on moderation policies after a recent controversial chat sparked uproar. To date, the app has been relying heavily on community moderation, the power of which I’ve witnessed countless times whilst in rooms.
So: Is the golden age of Clubhouse – only possible for a short period while everyone was stuck at home and before the app gained real mainstream traction – now over? Or will this new round of funding and subsequent development give the app a new beginning?
For now, I think it’s safe to say that the culture of Clubhouse will certainly be changing – what we don’t know is if the changes will make this cream-of-the-crop app even better, or if it’ll join the ranks of Instagram, Twitter, and Facebook in being another big-time social media staple.
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