logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Twitter (TWTR) Releases Details of IPO

By  +Follow October 4, 2013 8:50AM
Share:
Tickers Mentioned:

There are four characters on everyone’s mind right now: TWTR. The other 136 are irrelevant at the moment. Social media company Twitter officially released the details of its initial public offering after market close on Thursday, including its ticker (TWTR), its fundraising target ($1 billion), and a rough time table (the company hopes to start trading before Thanksgiving).

Now, if only they had a way to get the word out…

#losingmoney

Twitter has long been a company with more question marks than firm answers, and its IPO filing answered at least some of them, filling in a backlog of details like total users (218 million active as of June) and executive pay (CEO Richard Costolo made $11.5 million last year, President of Global Revenue Adam Bain $6.7 million, and Senior Vice President of Engineering Chrisopher Fry $10.3 million).

The company also revealed significant year-over-year growth in the first half of the year, with users up 44 percent from the same period in 2012, and revenue increasing by 108 percent to $253.7 million. However, despite doubling first-half revenues, the company lost more money in that period than it had last year. The company lost $69.3 million in the first half of 2013, compared to just $49.1 million in 2012. In fact, Twitter lost a total of $79 million over the entire year in 2012, making the first half of 2013 a rapid increase in the pace money’s going out the door.

#whysoexcited?

One may wonder out loud why investors are lining up for a company that’s on track for just $545 million in revenue this year and more than $100 million in losses. Why would people buy $1 billion worth of stock in a company that’s losing money, and losing it at a faster pace than it did last year? Well, for starters, revenues are ramping up quickly. The company’s $316.9 million in revenue in 2012 wa up from just $106.3 million in 2011, and it’s projected to hit $807 million in 2014. And while it appears headed to a year-over-year increase in losses, it’s probably going to end up well below the $164.1 million the company lost in 2011.

And what’s more, this is the tech sector. Twitter has captured the public imagination, and an influx of cash should be just what the company needs to monetize the millions of eyeballs its platform commands. That’s more than enough for many investors to go on as it has often been in the past for this sector.

Profits? Come on, get with it grandpa.

#mobileadvertisingisking

What really has investors salivating at the prospect of Twitter going public is how effectively the company has translated to mobile devices. One of the big questions that hounded Facebook (FB) in the lead-up to its IPO last year was how the company would generate ad dollars from mobile users, and one of the biggest reasons the company’s stock has taken off since the end of August 2012 (up over 170 percent) was showing improvement in that area.

Twitter, though, has the sort of success in mobile that Facebook still dreams about. Twitter’s filing boasted that 75 percent of users accessed the site via smart phones or tablets, and 65 percent of the company’s ad revenues came from mobile devices (compared to just 41 percent for Facebook).

Clearly, Twitter isn’t about to start challenging Facebook for social media supremacy. Because 65 percent of Twitter’s $220.6 million in ad revenue from the first half of 2013 is $143.4 million, and 41 percent of Facebook’s $2.9 billion in ad revenues over the same period is $1.18 billion (more than five times as much). Also, Facebook has profits, young’un. Despite the scale, though, Twitter is performing very well in an area that experts believe is where the future online ad revenues lie, and that should keep it attractive in the eyes of investors looking for a growth play.

#facebook

Another major factor making Twitter’s IPO a different animal is Facebook’s presence in the market. Prior to Facebook’s IPO, the biggest social media platform in the world by several orders of magnitude remained private, making it difficult for people to value any company that existed in the segment. This probably played some role in Facebook losing nearly 50 percent of its value from May 25, 2012 to August 31, 2012. Now, with the world’s biggest player in the space anchoring the market, it’s entirely possible Twitter won’t receive the same level of skepticism that greeted Mark Zuckerberg’s arrival. The Global X Social Media ETF ($SOCL) is up over 50 percent this year, potentially showing that the market has found its footing in the social media segment.

#shouldibuyit?

Precisely what awaits Twitter on the open market isn’t entirely clear, but then, it never is. Facebook may be providing more stable ground for Twitter to land on, but the company could delay its much-anticipated IPO until next year if the government shut-down and/or debt-ceiling battle create a negative investment environment. Which makes sense, as this is one decision they can’t retweet.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for FB
Corporate Algorithm
27 Nov 14 21:22:01
$MYL $FB $WAG CBOE In the Money Options 11/26/14 http://t.co/hRfbzMdBHJ
BUZZ Just-In
27 Nov 14 21:15:20
Compare brokers to find the right one for you- US Tech Giants http://t.co/TPs273ELCb $MSFT $TWTR $AAPL $FB $GOOG #spreadbetting #cfd
Vid E
27 Nov 14 21:11:22
Happy Thanksgiving traders!! $aapl $goog $fb $amzn $tsla $qqq $spy $DJIA http://t.co/n9MQyLmoaj
SmallCaps
27 Nov 14 21:06:26
http://t.co/t9v4IO2vow <<-- Tandem Trader dvd video #stocks #trading #nyse #nasdaq $FB $TWTR $STUDY $NQ
Stock Signaling
27 Nov 14 21:01:26
Movers and Shakers: Making Range Advances: $KMR $TXN $KMI $BEBE $ADI $VNET $AAPL $SONC $BDX $SWKS $NKTR $FB $ATML $IDRA $HCT #finance #dow
BUZZ Just-In
27 Nov 14 21:00:20
Why access a ticker when you could acesss a group of tickers- Social Media Stocks http://t.co/lHJArhR8df $TWTR $LNKD $FB $GRPN $ZNGA
Stockaholics
27 Nov 14 20:49:52
Our Penny Stock Pick On $STTK Is Up 128.57% In 2 Days! Major Update: http://t.co/oR27rFfh2v $F $SIRI $FB
Justica Cuddy
27 Nov 14 20:49:00
Actives on open @CBOE: $AAPL $PBR $TWTR $TSLA $AMZN $SUNE $FOLD $MRK $GILD $C $FB
Russell Barbour
27 Nov 14 20:48:57
TIMfundamentals Part Deux: http://t.co/AofkNb5uko via @YouTube $FB $TWTR $ICAD $VSR $EYES $STUDY
Abhishek
27 Nov 14 20:47:05
The end of QE, but that doesn�t mean the end of profits. http://t.co/J34Zv3VC9P $vxx $sm $jcp $nflx $dpz $fb $twc
Abinadom Pitts
27 Nov 14 20:33:52
Teens love Nike. Apple. Instagram: $FB? Not so much http://t.co/3BlvOkG5SG
tom lloyd sr
27 Nov 14 20:24:00
$FB 78 tgt 81? Switches from supply to demand, filling the gap down, little resistance
Doug Flynn CFP® ChFC
27 Nov 14 20:22:33
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Arindam Nag
27 Nov 14 20:17:47
New Facebook rules will sting entrepreneurs http://t.co/06eYg8Yd35 via @WSJ $FB is getting smarter.
Futures Portal
27 Nov 14 20:14:26
Will this affect FB Income? New Facebook Rules Will Sting Entrepreneurs http://t.co/bbVbgFRNeD $FB #Facebook #entrepreneur
Eli Grelecki
27 Nov 14 20:13:01
RT @FousAlerts: Top 7 reasons Im Thankful to Be A Day Trader $FB $TWTR $LNKD http://t.co/DdMMS3Ac3X
wzyboy
27 Nov 14 20:09:05
@xream $FB 的创始人 Mark Zuckerberg 的姓氏是也是德语(意思是「糖山」),但是人家跟德语国家没关系来着…
Ashok
27 Nov 14 20:05:03
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Mark Brant
27 Nov 14 19:56:53
RT @Options_Edu: Today's Most Active #Options http://t.co/xT0RB5C7Wy $SPY $AAPL $SPX $FB $QQQ
PennyStock Zone
27 Nov 14 19:56:14
http://t.co/nGpJsAI10D <-- Turn $100 into $1000, $10000 or more in 30 days! #stocks #trading #nyse #pennystocks $FB $TWTR
™
27 Nov 14 19:45:15
RT @GoogleFacts: More than a handful of people have been murdered for unfriending someone on Facebook. $FB
Pot-stocks.com
27 Nov 14 19:39:12
Head over to our forums to talk Pot Stocks! http://t.co/CsEGQ7hU8U $FB $TWTR $AFAI $GBLX $ERBB #Greenrush #market http://t.co/UVXaFd1OQB
Henry Situ
27 Nov 14 19:37:20
Sold $fb yesterday
JLM
27 Nov 14 19:32:29
serial #retail wholesale (products) site goes up 24hrs. These days you must attach blogs to your co(s). Inevitable process, connect $fb / IG
Caidao Wealth
27 Nov 14 19:32:04
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Mo
27 Nov 14 19:29:32
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
PennyStock Zone
27 Nov 14 19:26:30
Gobble Profitly 50% coupon code: http://t.co/tdrOyrklRR via @profitly #stocks #trading $FB $SPY $EYES $HURC $LIVE
moderneconomist.com
27 Nov 14 19:16:06
RT @timothysykes: I don't like guessing games but this is fun http://t.co/vZcJtx54Pa get pumped $TWTR $FB $LNKD peeps!
Vitaly V. Jaremchuk
27 Nov 14 19:13:48
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
DeidreZune
27 Nov 14 19:12:06
New Facebook rules will sting entrepreneurs http://t.co/ojXU9W3a3Y $FB Will Remove Unpaid Plugs in User News Feeds Good for investors
Rakesh
27 Nov 14 19:11:21
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Mr. Sunshine
27 Nov 14 19:09:31
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
hmmhmm
27 Nov 14 19:08:59
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
fazo
27 Nov 14 19:07:41
@NotoriousPaulie @mmrosati_92 @hustle1776 I'm just gonna motherfucking ride $FB $HAIN $CELG $ACT to the promise land nd ump profits in feb
lancej
27 Nov 14 19:07:38
Tumblr Overtakes Instagram As Fastest-Growing Social Platform, Snapchat Is The Fastest-Growing http://t.co/KfZDcs5oTu $fb @techcrunch $yhoo
Ravi Romo
27 Nov 14 19:06:18
French, German officials call for new powers to regulate Internet firms such as $GOOGL $FB http://t.co/b1FtRXhYNw
Steven Schoenfeld
27 Nov 14 19:05:43
RT @howardlindzon: Yo economist - there is no such thing as a digital monopoly http://t.co/JJ3tyJ98AQ $goog $fb
Investing Insight
27 Nov 14 19:05:17
WSJbusiness: RT garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG ... http://t.co/KGqmhBfavQ
Russell Barbour
27 Nov 14 19:02:45
RT @Maleah333: http://t.co/K02Iv1wZD1 <-- How To Make Millions Presale 70% Off! ALL proceeds DONATED TO CHARITY! #stocks $FB http://t.co/y…
Heather_Kozan
27 Nov 14 19:02:12
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
ung teck hong 温德丰
27 Nov 14 19:01:20
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Timothy Sykes
27 Nov 14 19:00:43
I don't like guessing games but this is fun http://t.co/vZcJtx54Pa get pumped $TWTR $FB $LNKD peeps!
TBS Global Business
27 Nov 14 18:59:39
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Live Now
27 Nov 14 18:59:15
Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/Vn8OwNbdN5
Ackmanscam
27 Nov 14 18:59:10
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Investing Philosophy
27 Nov 14 18:58:45
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
WSJ Business News
27 Nov 14 18:58:36
RT @garyricciardi: Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Johnny Rockville
27 Nov 14 18:57:43
Happy Thanksgiving my fellow peeps! Wishes to you and your families! $MINE $VGPR $GRCU $VPOR $MYEC $NTEK $TAUG $HEMP $MJNA $TWTR $FB
Gary Ricciardi
27 Nov 14 18:57:16
Europe steps up war against U.S. technology superpowers. $APPL $FB $GOOG http://t.co/DRDU4yFq8H http://t.co/vxwqPi4Uxa
Jack Damn
27 Nov 14 18:52:44
New Facebook Rules Will Sting Entrepreneurs http://t.co/B6WTzHMxAz Network to remove unpaid plugs in user news feeds. $FB
				
				
By  +Follow October 4, 2013 8:50AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.