Twitter IPO

In september, Twitter announced it had plans to submit documents to the US SEC (US Securities and Exchange Commission). They wanted to go public but at that time they didn`t reveal anything about their IPO plans. Yesterday they made it`s S-1 filing. Wow!

Twitter has been valued at about $10 billion dollars. But who are the guys behind this micro-blogging site success? Evan Willians (co-founder), has 12 percent stake. Peter Fenton (board member), has 6,7 percent stake. Jack Dorsey (also a co-founder), has a 4,9 percent stake, and Twitter CEO Dick Costolo, with 1,6 percent.

The ticker code for Twitter is planning to be TWTR. According to the S-1 filing, Twitter is trying to raise $1 billion, and I don`t think they will have any problems to find investors to do that. The big question now is how many share are they going to print, and what will the share price be?

We all remember the listing of Facebook last year. Startet on $38 and plummeted to $17,73. Now the stock have made a comeback and are above $50. What a great bull. So far this year the Facebook stock is up 84,76 percent. YTD it`s up 120,85 percent.

Twitter will change the marketing rules, like Facebook, LinkedIn and Google. We can see it in their revenue. Last year Twitter`s revenue was up amazingly 198 percent! At the same time the net loss decreased by 38 percent!

The revenue for the first 6 months this year was $253,6 million. Up from $122,4 million in the same periode last year. Net loss for the fist 6 months this year was $69,3 million. Most of the money comes from advertising, and their products are promoted tweets, promoted accounts and promoted trends.

Daily they have 500 million tweets. Twitter have 200 million montly active users and 100 million of them is daily active users. What marketing managers can ignore so many users? We can expect the revenue to continue to rise up to the sky. The only way is up.

Institutional shareholders who have more than 5 percent is Spark Capital, Benchmark, Rizvi Traverse, Union Square Ventures and DST. Twitter started seven years ago, and without the investors who have raised hundreds of millions of dollars, we wouldn`t have twitter today.

In an interview from 2007, the co-founder Evan Williams (41 years old) say this about the service: «a no-brainer» for «social animals». It`s fun to write about billionaires and share it with the rest of the 99,99%!


Disclaimer: The views expressed in this article are those of the author and may not reflect those of Shiny bull. The author has made every effort to ensure accuracy of information provided; however, neither Shiny bull nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in precious metal products, commodities, securities or other financial instruments. Shiny bull and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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