Twitter has filed for it’s IPO and despite the fact that its document lacks information on its main source of revenue, advertisements, many predict that it will still do better than Facebook’s IPO last year with a multi-billion dollar valuation. According to one news article, the author believes that it could be a competitive advantage to not include information on its advertisements; however, it is still crucial for investors to know, even if twitter is growing in terms of members.

The prediction that Twitter will do better than Facebook comes from the fact that Twitter went public sooner than Facebook, preventing hype and an inflation in the valuation. Also, the underwriter for the Twitter IPO, unlike that of Facebook, is Goldman Sachs, not Morgan Stanley (which has led many failed tech companies).

Taking in these points, I believe that Twitter will do better than Facebook for its IPO if its revenue from advertisements is growing and there isn’t a pre-hype that causes a fiasco when stock prices drop.

Citation:

Vardi, Nathan. Why Twitter’s IPO Won’t Be Like Facebook’s IPO. Forbes. Web, 13 September 2013.

http://www.forbes.com/sites/nathanvardi/2013/09/13/why-twitters-ipo-wont-be-like-facebooks-ipo/

Berman, Dennis K. The Big Hole in Twitter’s IPO Filing. The Wall Street Journal. Web, 10 October, 2013.

http://online.wsj.com/news/articles/SB10001424052702304500404579126950604701622