Friday, September 13, 2013

Twitter Files for IPO

The fact that Twitter is taking advantage of the JOBS filing means that the company's annual revenue is less than $1bn.
I've been reading about the sentiment of twitter amongst the various groups of users and potential investors. The tech users seem to find this IPO similar to the FB IPO - where most of the money will be made by the private investors who invested before the IPO. The current valuation is expected to be $14bn. I think we can't underestimate how many investors utilise twitter as both a go to source for financial data and to share links to their own work, compared to the uptake of Facebook by the older users.
Whilst Facebook has much more valuable user data; which makes the data more compelling to advertisers (and the revenue stream much more predictable) Twitter has less valuable data, but a much more valuable userbase, many of whom will reflexively push the value of Twitter post IPO to google like price action. Many investors may be gun-shy in light of the failed Facebook IPO, which will be a good opportunity to positioned in the stock.