Twitter Ipo

#TwitterlPO: Let the Frenzy Begin! This article comes from Yahoo Finance and is an analysis on the recent announcement of Twitter''s IPO. The tweet heard around the world came yesterday afternoon stating, "We''ve confidentially submitted an S-l to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale. " Immediately Wall Street was running wild with speculation over what the company could be worth, who the underwriters were, and whether or not Main Street investors would get fleeced as badly on this IPO as they all did on Facebook.

The analysts in this rticle mention that we are unable to see and Twitter data for quite some time and this must be due to Facebooks recent IPO and the demand for social media today. So far details are very scarce and this is due to the Jumpstart Our Business Start-ups Act. This allows companies with less than $1 billion in revenue can file for IPOs without having to disclose much of anything about their underlying operations until at least 21 days before their "roadshow. " Because of this, Twitter did not have to reveal any information about revenues, valuation, executive compensation, or even usiness strategy.

This is the first company that we have seen use this JOBS act that was put into place by the Obama administration. The analysts do not seem very fond of a company to be able to keep all of their information private until 3 weeks before the opening. Until last summer, early investors in Facebook were underwater and it was unclear that advertising via social media would be a sustainable business model once users transitioned to mobile. Those fears were put to rest on July 24th when Facebook destroyed earnings estimates and revealed that 41% of its advertising evenues were coming from mobile.

After this information was announced, it was only a matter of time as to when Twitter would go public. With little numbers known about Twitter, Wall Street has begun to value twitter and currently values it between $10-15 billion. This is Justified because Twitter has reportedly doubled its revenue in this passed year and is set to record Just over $500 million in revenue in 2013. The company is said to have around 200 million active Tweeters. The company produces numbers that are fractions compared to Facebook, however in many ways, Twitter as a much more compelling business model.

Twitter is dominant in the area of breaking news and the public is able to see news in an unfiltered form. Facebook may know more about the past, but Twitter knows who you pay attention to on a daily basis. I think that this $10-15 billion value is very conservative. I am a fan of Twitter and I think they have an entire other level of mobile advertising that Facebook does not. I think that this will be a very successful IPO and this will do great things for Twitter. This being said, I am not a fan of this new JOBS act put in by the Obama dministration.

I do not like how a company who generates under $1 billion in revenue can withhold all of its financials until only 3 weeks before the IPO. I also could see this being a temporary statement and Twitter may decide that when it is time to share its numbers, to remain private. I think that Twitter is great in connecting the world witn breaking news events Twitter''s business model is much more current and fast-paced than Facebook and this is the direction that the Millennials are heading into every day.