If you're look into buy some stock in Twitter, you have about a month to prepare before their big entrance into the game.
The company announced that it was make its long awaited debut on the stock market come November, where it will be known as TWTR. This will be the most important technology IPO since Facebook went public back in 2012—where it had a famously, let's say, difficult start. The IPO that Twitter made public on Thursday reveals that though the company is popular, it needs to find a way to increase its user base from the 215 million monthly active users it now has if it wants to make more revenue. Twitter plans to raise as much as $1 billion for its filing, but that could change in the coming weeks. The company's expenses hit $316 million in the first half of the year, which is a jump from the $169 million in the first half of 2012, which Twitter's heavy spending on marketing and sales had a hand in. They expect to hit about $600 million in revenue this year.
Last month, Twitter sent their IPO documents to regulators confidentially, with the help of a new law that allows companies with less than $1 billion to keep their details secret. But companies are required to make that information public three weeks before the "road shows," which is when Twitter can go to different investors and make a pitch.
"It's not well understood by Wall Street," said Michael Pachter, an analyst at Wedbush Securities. "I bet 80-percent of institutional investors probably had not used Twitter before the company said it had filed for an IPO confidentially last month. Whereas 80-percent of institution investors had probably used Facebook before its IPO last year."
"Investors don't understand Twitter," he continued. "But once they explain what they are, investors will love them. Twitter is a place to conduct extraordinarily focused real-time news tracking and research. It's a great service."
[via USA Today]