Boston, MA 02/05/2014 (wallstreetpr) – Post-IPO in November drives Twitter share prices upward
Twitter Inc (NYSE:TWTR) has been one of the most successful in the aftermath of a IPO earlier in November 2013. Analysts believe this dream-run was expected from Facebook but instead Twitter was the technology stock on the social media platform hustling past the winnings post.
In just a few months post the IPO, shares at Twitter have grown by over 150%. This definitely means the pressure remains that the first quarter earnings report be in-line.
Estimates by analysts indicate that the revenues are likely to double to $218 million with a corresponding per stock loss of 2 cents on a share. In the past two quarters Twitter has delivered way beyond with year on year growth pegged at 105 per cent. The sentiment is, will this bubble burst?
The answer will be found in the service angle Twitter will like to play forward. If the service becomes more mainstream then users are likely to remain engaged higher and push growth of the company beyond ‘critical mass’ levels.
Focus of growth will be mobile engagement
Twitter Inc (NYSE:TWTR) analysts predict the core growth will be measured on a currently growing group of monthly user engagement. As more engage on the mobile and remain users through the month, the earnings will be reality for the short messaging company.
While the argument that Twitter has since ‘matured’ has been gaining ground in the recent months, it does prove to be on a reinventing spree, with more features such as Direct Messaging and better on-screen ergonomic display.
Will this suffice to take Twitter into the next half of the decade or will it too see the slow-death that Facebook is predicted to see by mid-2015? This will be question to be answered.
Will Twitter propose an IPO lockup period?
Those industry experts watching Twitter Inc (NYSE:TWTR) speculate that perhaps the way forward for the company could be proposal where the IPO lockup would be probable. If such an event were to occur, then insiders could well down load shares. Considering the fact that the IPO price is $26 and the offering was 70 million shares, there is a possibility that institutions may show rigorous interest in holding on to the offering. This could then result in a small float. However, the possibility of expansion of the float, much earlier than what was expected is also likely.
