Twitter, a social media company decided to go public on the New York Stock Exchange this Thursday Nov. 8 2013. Its IPO was priced at $26 per share but only after the first day, Twitter ended with a share price of $44.90 per share. More than 13 million shares were traded once they became available an hour after the New York Stock Exchange opened and is “the biggest technology listing since Facebook in 2012”. This made me feel envious as to why I did not invest a little in Twitter myself. However, since the Twitter shares soared so high, it brought the attention to critics. Twitter has 230 million active users globally and has raised $1.8 billion from 70 millions shares but still has problems generating financial revenue. As a micro-blogging company, revenues are generating through advertisements. About 85% of its revenues streams come from advertising on its site, but more than 75% of Twitter users access the site from their mobile phone which does not have advertisements. Although the Twitter shares have increased about 73% from its IPO, I’m interested in seeing whether the company will continue to grow and increase its financial earnings or slump in the future just as what happened to Facebook at the beginning.
References:
http://www.bbc.co.uk/news/business-24851054
http://www.reuters.com/article/2013/11/07/us-twitter-ipo-idUSBRE99N1AE20131107
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