What to Expect With Twitter’s IPO

Here’s where Twitter could take notes from LinkedIn and Facebook. These companies don’t just profit off of advertisers, but also charge fees for developers (in Facebook’s case), premium subscriptions, and job recruitment options (a la LinkedIn). For Twitter, however, branching out could prove to be a bit more difficult. The company is still, ultimately, a place where people go to read short clips about what’s going on, and aren’t looking for (or looking to provide, in a developer’s case) any specific service.

That being said, Twitter is expected to bring in a huge amount of money through its mobile advertising within the next few years, a feat that threw Facebook for a loop for quite some time. eMarketer estimates that, by 2015, the company could bring in $1.33 billion in ads, and 60% of that will come from mobile. If it brought in that kind of money, the company could buy itself a little time to figure out how to better diversify its business.

Are tweets a good investment?
It’s impossible to pinpoint how Twitter’s stock will perform before the company even goes public. Once Twitter unveils more of its financials, it’ll be easier to make a more pointed assessment. However, there’s plenty of evidence to suggest the company has a shot at success, if it doesn’t stick to being a one-trick (or one-tweet) pony. In the meantime, don’t buy into Twitter fever; just try and keep as cool a head as possible.

The article What to Expect With Twitter’s IPO originally appeared on Fool.com and is written by Caroline Bennett.

Fool contributor Caroline Bennett has no position in any stocks mentioned. The Motley Fool recommends Facebook and LinkedIn. The Motley Fool owns shares of Facebook and LinkedIn.

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