The current trends in the stock market show that people are not very eager to invest in tech – stocks, although they are more than willing in investing in technology, including social media and online games. Dealogic, a data provider cited by CNBC, found that 2013 was a bad year for internet companies, as only one in six such companies filed for public offerings, compared to the stock market boom registered not many years ago. This report is important in the light of the recent news of two internet companies ready to go public by filing IPOs.
Twitter proceeded to a confidential filing under the U.S. regulations in order to go public, but the news come from interested and “familiar with the matter” people, but Twitter representatives have yet to make official statements. Some reports incline to think that Twitter is not going to jump the public train immediately, as the rumors concerning a potential Government shutdown are growing and have complex implications for everybody, but the New York Stock Exchange may have a very good surprise once Twitter ties up all the loose ends. If those addicted to their daily tweets needed more reasons to trust and invest in their favorite social network, then the fact the company was valued at up to $15 billion – according to Quartz – is proof that Twitter means and knows good business.
However dark might seem the horizon of American economy, another internet company recently made some waves about its recent IPO filing, proving that technology is still the future, both as a solid support for mankind development and also as an investment strategy. We are talking about British online game developer King, the one that created the popular game Candy Crush Saga. London’s Daily Telegraph initially cited an anonymous source regarding King’s (also confidential) IPO filing on Nasdaq, rumors confirmed by USA Today and Daily Telegraph, which talks about an estimated value of the company rising at up to $5 billion. Analysts in the market consider this as being one of the largest IPO filings of a British company in the last years, but if we take a look of the numbers, we can’t be that surprised, really.
King was seen by the Facebook gamers as an answer to Zynga, a company that unfortunately managed to disappoint both the users and the stock market. Candy Crush Saga became very popular, very fast, and even if some financial data regarding King are still unavailable, a rough estimate places the company’s overall business at around $480 million at the beginning of this year. Moreover, it is said that not only Candy Crush Saga is the most popular game on Facebook, but it gathers together around 250 million active players a month.
Twitter and King come to the Wall Street’s attention in a time that is marked by important political, financial and social changes. Analysts hope that their actions will reanimate the stock market regarding tech companies and revive the numbers, as some companies such as Box and Dropbox rumored their own IPO filings next year, with Twitter and Candy Crush Saga leading the way and re-building the investors’ trust in online technology companies and tech related business – heavily shaken by Facebook’s low quality and quite disappointing IPO debut last year.