An article from Maclean business blog has caught my attention. Twitter’s IPO is no doubt a hot business topic in November . The price of twitter’s share increased from $26 at the beginning to around $50 after a week and that translate into a market valuation of about $27 billion.

But that doesn’t mean twitter doesn’t face any challenge now. The most critical problem of twitter is that it has never made profits in its 7-year long history. Moreover, compared with the most successful social-media in the world—Facebook, twitter’s user base is quite small. This makes it less attractive for other companies to put advertise on twitter as there may be a more effective way to advertise themselves.

I think the author’s analysis is quite reasonable. The fact that its price has skyrocketed shows that the investors are quite confident about twitter’s future. The moment that twitter chooses to give off its IPO is perfect. The main resource of its revenue is come from the advertisement. Although, they never make profits in its history, they had made significant improvement in recent years. And all these positive signals convince investors to hold their shares and thus push the price jump up so quickly.