Should you invest in Twitter?

Should you invest in Twitter?

According to reports, the San Francisco business has told bankers it wants to tempt investors by offering its shares at a modest price. It has also chosen to join the New York Stock Exchange rather than Nasdaq, which is usually favoured by technology companies but which suffered a glitch when Facebook began trading.

The eight-year-old company doubled revenues to $ 168.6m in the quarter to the end of September, helped by a surge in mobile usage. However, net losses widened to $ 64.6m from $ 21.6m a year earlier.

Since it filed for its IPO, Twitter has been at pains to demonstrate its potential to would-be investors. It has signed a series of deals with broadcasters, allowing companies that buy traditional TV ad slots around a specific show to then buy ads linked to the Twitter conversations about those programmes.

According to reports, Twitter is also preparing to use information about its users to help to sell advertising space on other online platforms.

Charles Stanley Direct’s Garry White looks at the key questions for potential investors.

Also watch Garry White discuss the three energy companies which have reported in the last week, namely BP, Royal Dutch Shell and the BG Group.

Watch Questor editor John Ficenec explain what you should avoid the Merlin Entertainment Float

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