Twitter has announced the release of its IPO in a tweet. The announcement made by the social media giant to go public has caused quite a stir in the investment world. After following in Facebook in the move to go public, many analysts are concerned it may follow its financial path’. Key concerns with the “micro blogging” platform have been raised since the release of company’s financials.

When Facebook entered the public market at over $38 per share, analysts grossly overestimated the company during the announcement if it’s IPO. With share prices dropping within days to $18, and taking over a year to surpass its original share price, investors and analysts are concerned Twitter’s shares may do the same.

Since the birth of the company in 2006, Twitter has lost roughly $419 million, but has consistently generated increasing revenue totaling $317 million in 2012. Also, as Twitter plans to raise over $1billion at a share price of roughly $30, putting the company’s value at $15 billion.

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

Even though the company has never posted any profit, I think that it will become profitable in the near future; it is generating increasing revenue due to their aggressive expansion strategy as well as a constantly growing user base. Twitter’s future is unknown, but for now, I think they will be successful in the long run.

http://www.cbc.ca/news/business/twitter-aims-to-raise-up-to-1b-us-in-ipo-1.1895100