The big birdcrap scam

Out of the mouths of birds – Twitter, in its S-1 stock market filing, assesses it’s own business thus; “Our success depends on our ability to provide users of our products and services with valuable content, which in turn depends on the content contributed by our users.”


Now this is beginning to sound very ‘Facebook’ / ‘Google+’ (pick your platform).

Essentially Twitter is saying that their entire business model is one that relies on the public contributing product (some call it ‘content’, ‘social media’, idle banter’ or even ‘true confessions’) that Twitter can use to attract people who will use and consume that product.

Nice work if you can get it ……….

Stock Market guru Warren Buffett apparently passed on buying Twitter shares.

Writing for Market Watch, Meena Krishnamsetty says; “In the case of Buffett and Berkshire Hathaway, they’re not your typical technology investors. They follow a very strict set of rules when selecting investments in this space [technology stocks], which, through our observations, boil down to finding tech companies that: 1. trade at very cheap multiples, 2. pay a dividend, and 3. have sustainable product offerings that will safeguard their survival over the next 15 to 20 years.”

I am sure that any monkey with an abacus can see that Twitter fails on all three of Buffett’s principles.

So, how does it feel to be working for Twitter, Facebook, Google+, Instagram, Pinterest, LinkedIn et al and NOT being paid a cent for your hard work and intellectual property?

Here’s how South African Investors can buy Twitter Shares

South African investors will now be able to trade on Twitter by opening an international account through IG’s South African office, following the listing of the micro-blogging giant on the New York Stock Exchange today.

Twitter is looking to raise in the region of $1.8 billion through the sale of 70 million shares (13% of total shares outstanding). An initial public offering at $26 a share would equate to a market capitalization in the region of $14 billion. At this stage it would appear that the IPO is fully subscribed as reported by news wires.

Shaun Murison, IG analyst commented “Initial thoughts tell us that there is a short-term euphoria surrounding technology and the social media space and perhaps we could see a significant rally. However the Facebook comparative would make investors nervous when we consider it’s near 50% price drop in the first week post IPO. Facebook at the time of listing was generating a profit which Twitter is not currently doing.”

The social media platform is attracting significant market speculation with post IPO share value highly anticipated. To follow the latest breaking news and expert market opinion surrounding the Twitter IPO visit: