The social networking company Twitter has said that it plans to raise finance $1bn through stock market. In my opinion, the main target of Twitter is still expansion 8 year after set up of the company. Since the financial report illustrates that the revenue grew from $28m in 2010 to $317m by the end of 2012, without making a profit. It is expanding so fast. The revenue streams come from advertisement sales(85%) and licensing its data. However, the business should achieve a balance because if it has too many advertisements, Twitter will be unpopular with users. The business has a very clear value proposition: it want to create an easy-to-use social media that creates something that people like and want to come back to spend time on. The business may want to raise finance through stock market to undergo further expansion, because the CEO said that they decide to raise capital and provide users with a excellent experience. But not all investors are optimistic to the share price, due to the poor performance of facebook share price last year. As a result, consumer expectation on share price may affect the actual share price.
Resources: http://www.bbc.co.uk/news/business-24392336