On November 7, 2013, the first day of trading on the NYSE, Twitter shares closed at US$44.90, resulting in the company being valued at around US$31 billion. This was up more than 73% from the initial price of $26 for each share. This was the biggest technology listing since Facebook went public in 2012. This obviously was a stunning first day for the social networking site but the most significant question remains whether Twitter will remain a fruitful investment option in the future considering it is currently a unprofitable company.

Twitter has in excess of 230 million users, which represents massive revenue-generating potential in the foreseeable future, however at the moment that potential is small due to it’s expense base resulting in a net loss. A loss of $69m was incurred by Twitter in the first six months of 2013 despite generating revenues of $254m. Twitter is unable to maximise their full potential as they’re aware that disrupting the customer experience might have a detrimental impact on their customer base.

On a side note, one advantage Twitter has over Facebook is that relative to last year, they’re perceived to have a ‘mobile strategy’ in place. Around 65% of their revenue was generated from mobile usage, as of 2013.

http://www.bbc.co.uk/news/business-24851054