Shares of New Tech IPO-Twitter went on sale to the public on the lat Thursday. It means Twitter has officially transfer from a private company to public company. Twitter set its share price as $26 per share for it’s IPO(initial public offering). This price values Twitter at approximately $18 billion market capitalization which is also the most highly anticipated IPO since Facebook in 2012. The IPO from Twitter is expecting to raise about $1.8 billion from the public before its expenses. The company offer 70 million shares to the market and provide another option to buy another 11 million shares. Assume all the shares are sold, Twitter will totally raise $2.09 billion.

In the first day on the stock market, Twitter soar about 72% to $44.9 per share. Does it worth $44 per share? From my analysis, I don’t think it worth that much because Twitter has never turned a profit since it was founded in 7 years ago. The investor forgot that when the market opened. The reason why Twitter climb up 72% is because theeir temper expectation and passion and the encouragement from investment bank. When the investor realize it doesn’t worth this price, Twitter will start going down. Most analysis don’t expect Twitter to be profitable until 2015.

To be more profitable, Twitter should consider it s marketing problem. As we can see, consumer marketing will become a big proportion of investment from twitter if they want their active user members to grow more. In fact, The twitter;s user growth has slow down in the United states(Just 53 million from the US,compared to 179 million from facebook). Twitter can try to attract different audience by promoting different content that easy to follow on a popular culture.

From: http://news.yahoo.com/twitter-ipo-live-busy-morning-twitter-debut-140811323–finance.html

http://news.yahoo.com/dazzling-twitter-debut-sends-stock-soaring-73-pct-222550230–finance.html