Twitter arrived on Wall Street

 

The social network Twitter is this Thursday, November 7, 2013, its IPO on Wall Street. A highly anticipated in the world of new technologies event. The pressure is on to Twitter.There is a year and a half, the IPO of rival Facebook was marked by many problems.

• 232 million active users worldwide,


• More than $ 420 million in revenue, expected this year.

Created seven years ago, the social network has seen its number of users exploded in recent years. These short messages of 140 characters are imposed against the mainstream media. A communication tool through which demonstrate, in real time, people around the world. We have seen, during the earthquake in Fukushima in Japan, where nearly 5,000 tweets per second were exchanged.

Twitter will he succeed to monetize the audience success? This is the challenge of this IPO. The company was founded by Jack Dorsey, there are nearly seven years, is now valued between 10 and 15 billion dollars. It is far from the $ 20 billion announced by some analysts there a few weeks ago. And that’s about $ 26 that was launched as Twitter, to the opening.

Significant financial losses

That’s a lot for a group that has never made any profits, and displays significant losses: one hundred thirty-four million dollars in the first nine months of this year. The fault lies with heavy investments abroad, and several acquisitions, particularly in the areas of video and television.

Like other free services on the Internet, Twitter derives essentially its revenue from advertising. By the way Google and its sponsored advertising links, sponsored tweets are, increasingly, appear in messages. Profit in 2012, Twitter has done better than its competitor Facebook on mobile: 130 million dollars of advertising revenue, against 73 million for Facebook.

Avoid Facebook scenario

But the pressure is on to the social network, especially, the IPO of Facebook, last year, had several problems. At its IPO last year, Facebook has accumulated misfires. A stock market overheated offer high prices, a massive volume of shares, and all crowned by many technical problems on the Nasdaq electronic stock exchange.

Twitter is cautious. The network has decided to start voluntarily with a low range, to better meet then. Twitter is selling 70 million shares; it is far from the 500 million shares of Facebook. Finally, to avoid computer bugs, Twitter chose the New York Stock Exchange, not the Nasdaq, which has recently been many technological problems.

Twitter arrived on Wall Street