In September 12^th, 2013, Twitter released a tweet at 2 PM saying, “We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This tweet does not constitute an offer of any securities for sale.”¹

Indeed, Twitter is going public which may or may not gain profit for the company. On one hand, twitter gets the most mobile users which can help the company increase the number of advertiser and its revenue is growing year by year. On the other hand, twitter has zero profit since 2006 despite its increasing revenue. The uncertainty of online advertising market also exists that the advertisers are not fixed. In addition, Twitter concerns spam accounts that could result in a lower stock price.

Although risks and concerns exist, Twitter could earn profit through IPO because it has a strong reputation over the public. In fact, according to the video² from the news, a penny stock which has the same symbol with Twitter “went from penny to five cents” when it is released on October 4^th. This shows that many people would like to buy Twitter’s stock and thus it is a worthy management decision to let Twitter go public.

1 http://www.cbc.ca/news/business/twitter-announces-ipo-in-a-tweet-1.1704547

2 http://www.cbc.ca/news/business/twitter-ipo-details-raise-questions-over-financials-bots-1.1912936