The recent Twitter IPO brought back the time of the “first Internet bubble” over a decade ago. “You got a website? You can go public!” Whether you make money or not, didn’t really matter. And so it doesn’t with Twitter. The company has already lost over $100 million this year and is expected to lose money for the next few years.
Riding the hype is tempting, but if you are one of the armchair investors that try to make some money for retirement, you should stay away from IPO’s and stocks of this kind. You are not going to win, unless just having the stock in your portfolio does give you something. Keep in mind, there is no profit, only losses. Sooner rather than later, once the big player have satisfied their “needs”, this stock will “retreat”.
Check out the infographic and see that it is still possible to bring a website public, even if you have never posted a single dollar in profit.