Twitter’s success to come into market

Twitter shares opened at $45.10 and marking a 73% pop from its initial public offering price and its market value is more than 24billion dollars. Twitter is so success in social networking and which give other companies confidence to go public.  Why twitter is so success to go public? I think it is due to three reasons.

The first is the market prospect of the Twitter is valued. In the past year, the company’s revenue of $534 million,  created a loss of $143 million. But this year, the company’s revenue in the first nine months has more than doubled, to $422 million. In addition, compared with billion users of Facebook, only 0.23 billion active users of Twitter’s investment risk is lower.

The second is the creativity. compared with Facebook CEO Zuckerberg annouced they come into the market. Twitter choose three common people, an actor, a little girl and a middle-age women. Twitter skillfully chose three different needs of users, from entertainment, charity and government propaganda these three angles to reflect the value of the company.

The last is the  market has been a lack of good company IPO  a long time. After Facebook, the capital market has been a long time without IPO, market accumulated too much money, this make twitter’s opening price continue to rise.

references:

http://tech.sina.com.cn/i/2013-11-07/23528893645.shtml

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