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Wednesday, December 25, 2024

Twitter Exploring a Potential IPO

Submitted by Mark Hanna

Courtesy of MarketMontage. View original post here.

Twitter announced yesterday it has filed a confidential S-1 as a precursor to a potential IPO.  Being one of the ‘name’ franchises of the current internet, this should be one of those huge deals when the day comes.   Some thoughts from BusinessInsider:

  • The early Twitter IPO “price talk” is $20 billion.  This would be 17-times Twitter’s projected 2014 revenue of $1.2 billion.
  • We don’t have precise information yet on Twitter’s financials over the past  few years, but the company’s growth rate is said to be about 100% per year. So  the projection of $1.2 billion of revenue in 2014 would be up from, say, $600  million this year. (We’ll know more when we see the filings).
  • A multiple of 17-times 2014 revenue, meanwhile, compares to 2013 revenue  multiples of 15-times for Facebook and 19-times for LinkedIn.  So this price would be in the ballpark of where similar companies are  trading.

 

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Any securities mentioned on this page are not held by the author in his personal portfolio. Securities mentioned may or may not be held by the author in the mutual fund he manages, the Paladin Long Short Fund (PALFX). For a list of the aforementioned fund’s holdings at the end of the prior quarter, visit the Paladin Funds website at http://www.paladinfunds.com/index.php/the-fund/holdings

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