Despite a dip in user growth and little indication of turning a profit, some fund managers have predicted that the valuation of global social network and microblogging service Twitter will rise significantly after its recent IPO listing.
The Company’s valuation is said to be $12.8 billion, a figure based on the fair value that Twitter placed on its shares in an initial public offering filing last week writes Bloomberg.com
The online economic, financial and business publication also refers to a projection made by Ironfire Capital LLC and Gamco Investors Inc. (GBL) which stated that Twitter could be worth $15 billion to $20 billion once trading starts.
These goals are reachable, according to analysts, because of Twitter’s global expansion, as well as revenue generated from advertising.
Bloomberg.com quotes Jeffrey Sica, President of Sica Wealth Management in New Jersey, as saying, “The valuation is fair despite the lack of quantifiable profit. I anticipate the revenue to grow exponentially as retailers and media begin to explore ways to attract new customers through the use of Twitter.”
The publication also states that Twitter has not yet set a price range or confirmed when it expects to debut.
Staff Writer
