Which social media character is planning to hit the US stock market next year? You’ve got just 140 characters to answer it. Yeah, you guessed it right. Twitter, the popular microblogging site is expected to hit the US stock market in the first quarter of 2014 with an initial public offering of $ 15 billion (!!!) as per a report by PrivCo, a provider of business as well as financial research on key privately-held companies. PrivCo has conducted the research based on information from its resources.
Twitter is expected to see vigorous market valuations mainly benefitting from its revenue-fetching sources. Twitter’s possible IPO is based on latest monetization measures that lead to an increase in revenues for the site, said the research firm. The monetization measures include promoted tweets, audience targeted tweets for advertisers as well as partnership with photo-sharing site Pinterest.
“Twitter Inc plans to file for an IPO as early as the 4th quarter of 2013, and plans to go public in the 1st quarter of 2014,” PrivCo has said. PrivCo CEO Sam Hamadeh (@SamHamadehNYC) has also added “Twitter will learn from Facebook’s flawed playbook and do the opposite. Twitter will conservatively price its IPO at 30 times revenue, or $ 15 billion.” (In May 2012 Facebook had come out with $ 16 billion initial public offering.)
As per PrivCo’s estimates, Twitter can see its revenue touch the $ 500 million bar in 2013. According to them, from $ 87.5 million in 2011, Twitter’s profit is expected to jump considerably to $ 245 million in 2012. They are also of the opinion that Twitter has been accelerating its international expansion aggressively.
“Unlike Facebook, which waited too long to IPO (until its growth rate decelerated), Twitter will IPO at just the right inflection point: while revenue grows in triple digits and with its final pre-IPO quarter reported at its seasonally strongest fourth quarter,” Hamadeh also added.
With 200 million users worldwide Twitter will surely be a great addition to the US stock market.