On Wednesday, Twitter raised a jaw-dropping $US1.82 billion by going public. A buying frenzy drove the share price from $US26 to $US44.90.
Investors are betting big that the company will grow into it’s equally jaw-dropping valuation: $US22.69 billion at the end of trading on Friday, nearly 20 times its estimated 2014 sales of $US1.14 billion, according to analyst projections.
Only time will tell if Twitter will live up to that.
But here’s one hint that it could. Glassdoor put together a chart of pre- and post-IPO approval rating of other tech companies that had hot IPOs. These are ratings from employees.
Note Groupon and Zynga. Prior to their IPOs employees didn’t think highly of their CEOs. Andrew Mason had a 70% approval, Marc Pincusa 45% approval rating.
On the other hand, prior to Facebook’s IPO, employees loved Mark Zuckerberg. Dick Costolo’s rating is even higher. That’s a hopeful sign.
The exception is Jeff Weiner. Employees felt lukewarm to him prior to the IPO. But the stock is trading above $US200 and they’re pretty happy with him now.
This story was originally published by Glassdoor.
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