Twitter Goes Public
POSTED: Friday, November 8, 2013 - 4:00pm
UPDATED: Friday, November 8, 2013 - 4:09pm
Social media giant's stock expected to be offered at $23-$25 per share. Mark Barger reports.
(NBC News)It's got 232 million users but zero dollars when it comes to profit.
Still, Twitter's initial public offering of stock Thursday has many on Wall Street pumped.
"It's definitely a big deal and Facebook makes it a bigger deal," said Cnet's Lindsey Turrentine.
Because Facebook shares have doubled in price this year; at times topping 50 dollars a share.
That's even after its rocky ipo a year and a half ago that saw $38.00 shares lose half their value in the opening months.
But in comparison to Twitter, Facebook has four times the users and a profit its rival doesn't.
"The challenge that twitter has is that twitter isn't able to make money off the global audience very effectively yet. It's still building out its global sales forces so it can sell advertising outside of the United States," said Turrentine.
Like Twitter, Amazon.com was also losing money when it first offered stock 16 years ago.
But those shares have gone up 18,000 percent since.
Twitter projects profitability in 2015.
Even as some on Wall Street navigate the learning curve about the service's potential.
"They think it's all about an envelope with 140 characters and they don't really understand that inside is actually pictures, and video," said Mike Vorhaus, President of Magid advisors.
It's those elements that appeal to advertisers.
And they're the fuel needed to make twitter's ipo a long term success.