Thanks to Facebook, social media sticker shock may be at an all-time high on Wall Street.
That’s bad news for Twitter, as the micro-blogging site prepares to go public on Thursday.
In the run-up to Twitter’s initial public offering, a new AP-CNBC poll released Monday suggests that Wall Street may be running out of enthusiasm for social networks. The survey found that investors are highly skeptical of putting their money in Twitter.
The seven-year old social network from San Francisco adjusted the price of its initial public offering on Monday to between $23 and $25 per share, from $17 to $20 previously. The company will make a final decision on the IPO price Wednesday night. It intends to sell 70 million shares, and raise more than $1 billion.
In the wake of the early struggles of Facebook’s IPO in 2012, the survey found that nearly half of investors fear Twitter will be a bad investment, while only 36 percent think it will be a good investment.
That’s a far cry from the 51 percent of investors who had confidence in Facebook last May before it went public, and the 31 percent who said it would be a bad investment.