Twitter Mobile Play Crucial for Post IPO Equity Return

08:22:00

Twitter is getting ready to be public company and offer its growth story benefit to potential investor base. With around 232 million active user base, its international user base is growing faster than domestic user base. With the potential valuation achievement of around $15Bn at the time of NYSE listing, the investors are contemplating the right valuation. Twitter is expected to cross $625 million revenue ending FY13-14, and more than $150 million in losses. The growing losses are making potential investor nervous regarding Twitter ability to change track and become profitable. Post Google blow out quarter, investors must be assured of upcoming success of Twitter. Twitter invested heavily in building their micro blogging site, technology robust and started to play around with big data recently. Twitter is generating more than 80% of its revenue advertisement and 65% of the total comes from mobile. It indicates the potential hidden opportunity with Twitter. Investors are nervous post disastrous IPO of Facebook but post adoption of mobile ecosystem, it is trading at $54 valuing company around $132 Billion. In my point of view, post buying many company focussed towards advertisement segment, it is evident that Twitter mantra is to target their user base information and target with preference based advertisement management to reap in maximum return. The value long term investor may opt for value centric Twitter IPO

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