In Aaron Lattimer’s blog, there is a fantastic post about Twitter’s recent and successful IPO. Aaron’s “Worth the Wait?” tells about how Twitter recently had its initial public offering with share prices at about $26; peaking at $50, the shares appeared to settle around $46. It is safe to say that  “Twitter has made history as being the largest IPO in the US technology market ever” (para.3). Although the stock is relatively cheap compared to other technology giants, TWTR definitely performed to the high expectations of bull-investors.

Aaron brings up two key points about how Twitter has never made a profit in the last few years  and its revenue streams, specifically advertising, are very prone to skepticism. Twitter is already a heavily cluttered service; with constantly updated feeds, users tend to just scroll through much of the news feed or simply search for tweets from users or under topics they are interested in. Advertisements may be easily brushed off unless the social media company is able to develop a way to constantly display ads without annoying the users. There are also limiting factors of the service like the small screens of devices like Aaron mentioned.

While I believe Twitter is a solid social media service that is here to stay for the time being, it will relatively stay at its current market value until it finds a more revolutionary way to effectively deliver powerful ads to consumers. As a relatively cheaper stock, we may not be able to expect too much at all. Then again, Facebook’s IPO was full of surprises…

https://blogs.ubc.ca/aaronlattimer/2013/11/12/worth-the-wait/