As speculation continues to brew over the next big Bay Area IPO, it’s safe to say we can narrow it down to a handful of companies that have tested through the roof in the past year.
There is a certain amount of guesswork that can be attributed to projecting the next big IPO. For one, companies are now legitimately uneasy about the prospect of going public and becoming the next Facebook, which has plummeted down the stock market since it debuted in May. Fortunately, it appears companies are more weary of the fact that they can toe their foot into the market pool to test the waters to ensure a comfortable transition. And if the market doesn’t respond contentedly, companies can withdraw without any lasting repercussions.
The largest name to enter into the market is the social networking giant Twitter. Currently, the IPO valuation is said to be in the neighborhood of $11 billion, a pretty penny for a website built on 140-character limit updates.
In 2012, the San Francisco-based company spent much of its time with the monetization and preparation of an IPO after Facebook didn’t meet its profit expectations. However, Twitter has still not indicated whether it will go public this year or wait until 2014. The wait could be a result of users’ complaining of a deterioration of a social media experience in the company’s pursuit of infinite profits, which still remains a fluctuating balancing act.
Still, Twitter will seek a public offering soon. It’s just a question of whether we see its ticker symbol before we bring in another new year.
Dropbox, the web-based file hosting service, has shot up investor’s radars this past year, certainly becoming one of the most recognizable companies in 2012. In fact, the company reached over 45 million in 2012, which only accounts for a small share of the potential 2 billion phone, computer and Internet users it could possibly reach worldwide. Their business model even drew a bid from Apple, which Dropbox later declined.
The success of Dropbox has the investment world buzzing to the point there have been rumblings of whether the company will file for an initial public offering this year. But there are a few dealings that might need to be resolved before an IPO. The company has indicated it plans on expanding into the international market, specifically into the Samsung Ericsung mobile phones which will give users a free additional 1GB storage space upon purchase. Still, the company’s prospects of going public appear strong in 2013.