Twitter's Bottom line
Twitter’s initial public offering suggests a $12.8 billion value for the social media platform; the fair value of its common stock is estimated at about $20.62. This sheds some light on the previously privately filed IPO and the veil of secrecy that has recently surrounded twitters financial situation. Whether the companies really worth $12 billion and the stock value is accurate ultimately depends on how twitter promotes what only twitter does, the real time news and trending feature that is essentially a global town square.
What investors are afraid of is the situation that occurred when Facebook went public. In the time since Facebook has rectified the previously horrific situation and done right by the majority of its investors but some were left with a bad taste in their mouths after the social media giant’s stock began to plummet the instant it hit the market. Facebook was valued at substantially more and had generated far more profit then is sister platform Twitter but it had been around a little longer and its potential as an advertising platform had begun to plateau. Most think Twitter has greater potential in part due to its unique trending feature and international accessibility. Recently more mainstream methods of advertising have begun to embrace the social media trends and instead of looking at these platforms as rivals they (and rightfully so) have looked at these new systems as complements to their own advertising. Two major networks, CBS and The NFL, have both made deals with Twitter and this is expected to truly bolster the already powerful platform.
It’s going to be tough to tell or to really get a 100% accurate estimate of what this company can truly do and is truly worth. There are a couple of things that are working against Twitter, it’s unstable profitability and sporadic growth may cause potential investors to look the other way. On the other hand Twitter is able to do something that no other media platform can do, its instant news feed and trending features are wholly unique and if properly emphasized will have the capacity to do incredible things.
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by Jarrad Kulick