Since LinkedIn Corp (NYSE: LNKD) first went public in May 2011, social media IPOs have undoubtedly provided major investment opportunities for those willing to take part.
However, many investors are wary of social media IPOs given their unique business models.
Upcoming Social Media IPOsInvestors always want to know as much as they can about social media IPOs ahead of time, so they can get in on the ground floor with some knowledge of how the potentially public businesses perform.
According to a company job posting, the music streaming service Spotify is likely preparing for an IPO for this year.
Reuters reported that the company created a listing for an External Reporting Specialist, a position that requires the preparation of SEC filings and reports. The company is valued at a little more than $7 billion, but it is currently failing to run a profit on $720 million a year in gross revenue... Read more.
Moreover, growing confidence among investors about music streaming business models sets the stage for a potentially successful launch for Spotify.
According to Privco:
1) Spotify's losses ballooning despite impressive revenue growth (up 131%); now a larger player than Pandora2) Cumulative losses surpass $200 million.
3) Is an "All-You-Can-Eat" music model viable? Read more.
Another social media outlet that could go public in 2014, is Pinterest.
Pinterest is a site for people to aggregate their favorite content & recently had was valuated at $3.8 billion.
Unlike Spotify, Pinterest is having problems justifying its valuation with revenue. That said, there will likely be a stall on any Pinterest IPO for a while.
Whats your input on social media IPOs? Join the conversation on Twitter on #SocialMedia #IPOs in 2014, and be sure to follow @MoneyMorning.
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