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Could Twitter really be worth as much as $20 billion?

Could Twitter raise $1 billion on the stock market?
Could Twitter raise $1 billion on the stock market?

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It’s the next, big blockbuster initial public offering since Facebook and Twitter has just filed the papers to raise $1 billion on the stock market. Its ticker symbol will be TWTR. The New York Stock Exchange and the Nasdaq are both jockeying to launch the offering.

After Facebook’s botched IPO on the Nasdaq, many people are expecting Twitter to go with the NYSE instead. The microblogging site hasn’t yet announced a decision. Twitter said in its filing that it made over $250 million in the first half of 2013, up from $122.4 million in the same period last year.

The company has 215 million monthly active users and broadcasts around 500 million Tweets a day, but its ad revenue is only one-sixteenth that of Facebook’s at the time of its IPO in 2012.

What is Twitter’s business model now? Could it raise $1 billion? Some analysts predict that Twitter’s valuation could balloon to over $20 billion after it starts trading. Really?


Paul Sweeney, Senior Internet Analyst at Bloomberg Industries