Twitter, Inc. confirmed weeks of speculation about an IPO on Thursday by announcing–in a tweet, of course–that it had filed documents with the SEC for an initial public offering of stock.
We’ve confidentially submitted an S-1 to the SEC for a planned IPO. This Tweet does not constitute an offer of any securities for sale.
— Twitter (@twitter) September 12, 2013
The company then posted a follow-up tweet:
Now, back to work. pic.twitter.com/e4lK8e7pY9
— Twitter (@twitter) September 12, 2013
It is still unknown what the exact public valuation of Twitter will be, but CNBC reports that Twitter has previously been valued at around $10 billion. The company’s revenue has steadily been increasing over the last year, and eMarketer reported earlier this year that Twitter is expected to generate $500 million in advertising revenue this year and $1 billion by 2014.
Tech investors may be cautious about Twitter after their experience with Facebook–or they may be more bullish, depending on how they view the Facebook experience. Facebook filed for IPO in May 2012, and was valued at $100 billion. While the company’s share prices plummeted initially, Facebook has fully recovered this year–stock is up 68% in 2013, and is currently trading at over $45 a share.
Will you be buying shares of Twitter stock?
Nisha Chittal