Posted 11/05/2013 at 11:59 AM
Posted 4 years ago
Twitter has got a bright future.
A top bank that underwrites the company, and has access to lots of sensitive monetary data, has told that Twitter will double their revenue by 2015. Their profits are expected to go through the roof, as a result. This is important news for those who are considering buying Twitter shares. $620 million dollars in revenue and approximately $40 million in adjusted earnings (before taxes, etc.) are expected to be generated by the company. In 2015, Twitter’s revenue is expected to skyrocket to $1.24 billion dollars. More forecasting from investors includes that Twitter’s adjusted EBITDA will steamroll upwards to somewhere near $200 million dollars.
As it is common, mouths of both investors and bank staffers alike, thought to be in the know — when queried — stayed mum.
The overall picture is clear to see: These bank forecasts have Twitter singing a happy song as it is obvious that the company is growing fast, yet reports highlight that Twitter are also spending heavily.
There was a singular quote made by the chief investment officer of The Global Internet Fund, Thomas Wyman, regarding Twitter’s future: “There will be a nice inflection point for Twitter a few years from now”.
On Monday Twitter upped the ante by increasing the price range for its IPO: $23 dollars to $25 dollars per share replaces an earlier range of $17 dollars to $20 dollars. These figures represent substantial interest being taken from investors.
Depending on what price Twitter assigns its IPOs, at best the company could be worth almost $17 billion dollars.
Not a bad day at the office.