Twitter's losses widened during the first half of this year to $69 million, up from $49 million in the same period last year. In contrast, both Facebook and LinkedIn were profitable when they went public.
—COMING UP... MORE ADS
To make money, Twitter will likely get more aggressive about showing ads. In the three months ending in June, Twitter generated revenue of $139 million, or an average of just 64 cents per user. In contrast, Facebook generated second-quarter revenue of nearly $1.2 billion, or an average of $1.58 per user, while LinkedIn posted revenue of $364 million, or an average of $1.53 per user.
As Twitter cranks up its marketing machine, it runs the risk of alienating an audience accustomed to seeing relatively few ads in their news feeds. Beyond the U.S., Twitter is gearing to expand its advertising efforts in Australia, Brazil, Canada, Japan and the United Kingdom.
—TWITTER'S MORE "MOBILE" THAN FACEBOOK
Twitter appears tailor-made for an age of increasing reliance on smartphones and tablet computers. Three-fourths of Twitter's users already use the service on mobile gadgets. Perhaps more important to investors, the company sells 65 percent of its ads on smartphones and tablets. Facebook gets 41 percent of its ad revenue from mobile devices.
—ITS MARKET VALUE COULD BE AS HIGH AS $20 BILLION
Twitter hasn't set a price target for its IPO yet, but its documents contain some clues about its recent market value. The company's stock last sold in a privately arranged swap nine months ago at $17 per share. That deal implied Twitter had a market value of $10 billion to $11 billion at the time. Last month, Twitter priced some of its employee stock options at $20.62, based on a third-party appraisal of the company's value.
Some analysts predict Twitter will seek $28 to $30 per share in its IPO. If those projections pan out, Twitter will have a market value of $17 billion to $20 billion, including stock options and restricted stock likely to be converted into common shares after the IPO. Facebook made its stock market debut with a market value of more than $100 billion, but its stock plummeted before making resounding comeback this year.
This sector is set for huge growth These firms are set for the future.