Twitter is going to go public soon and has just filed for IPO, or Initial Public Offering, to be traded on the market after approval by the Securities and Exchange Commission. They are expected to fare well in the stock market once they are listed. They will join the stock exchange after a three-week period where a starting price will be set for shares. Even though they aren’t listed at the moment, they have already received a “buy” rating by a brokerage firm which claims that the stock price could reach $50 from “float[ing] at $28 – $30”.
Although the anticipation for Twitter going public is high, rival social media giant Facebook Inc., which went public last year, flopped in its initial public listing contrary to expectations. Some concerns for Twitter are that they reported massive losses in the last few years because of internal problems and not commercializing very fast. However, Twitter believes that advertising revenue will continue to go up.
One can only speculate how Twitter will fare when going public. They have been losing money and have a great deal of liabilities from the past few years, but their cash flow is increasing with increased and more specialized advertising. However, unless they stabilize their balance sheet, potential stakeholders may be weary to invest.
http://www.wired.com/business/2013/10/twitter-files-for-ipo-2/
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