Twitter Playing it Safe- Opportunity for Long Term Investor

08:48:00

Twitter implemented the learning from Facebook IPO and going cautious in valuing Twitter. Twitter is going for investor road show with $16 to $20 price range and may raise $1.6 Billion provided the offered price hit $20. Given huge user base of more than 225 million is ignored due to the associated increasing loss company is experiencing in the last many quarters. Twitter is hopeful of getting good response post Google stellar quarterly performance on the back of strong mobile centric advertisement revenue as Twitter also bought MoPub which is mobile ad company. Based on the offered IPO price, Twitter allotted 15 million share to MoPub and increased overall outstanding share of 545 million. The huge traffic on Twitter may turn their MoPub platform as goldmine for the future revenue growth. The conservative move by Twitter can be misused by long term investor to reap in maximum return from Twitter in next 2 - 3 years. Post raising funds, Twitter would be in better position to go for small but innovative companies acquisition spree to build ecosystem around its micro blogging as Twitter fully know contextual pattern of their user. In my point of view, Twitter is going to offer better return than Apple and Google in next 2 years.

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