Twitter went public about a month ago and financial analysts are trying to figure out how successful the measures actually were during this process. Did they make the right decision for their company? Did investors make the correct choice in paying over $40 a share for a piece of this company?
The largest question that many people still can not predict is if Twitter is a niche product or not. The success of Twitter is really going to rely on it hitting a more mainstream market. Google and Facebook are considered mainstream products with over a billion users, but investors still aren’t sure if Twitter is going to grow enough to get the advertising revenue that they are looking to build.
According to Twitter, the company more than doubled its quarter 3 earnings from the year before. Even with large gains such as these, Twitt
er is still unprofitable. Twitter needs to start turning a positive profit and needs to start making large scale gains at an incredibly fast rate. According to Mashable, Goldman Sachs and Deutsche Bank were the only major financial institutions to told investors in invest in the product. They see the fundamental business pieces together and room for more growth with the company.
Overall, it is going to just take more time to see if Twitter is going to make the massive gains in the profits they claim that they are able to do. Investors needs to sit tight and wait to see if Twitter can continue to grow small business advertising and well as advertising on Vine to keep profits high. Keep an eye on this stock because it will either soar or crash in 2014, and it will be quite the ride to watch.