Twitter IPO and What it Means to Your Small Business
Twitter is now a publicly traded company, with a pretty successful open, at least compared to the Facebook Fiasco when it went public. Speculators skepticism was in a full blown trot prior to the public offering, wondering if Twitter would suffer the underwhelming debut like Facebook . The starting price was set at $26, the first bids opened at $45.10, and the days trading peaked at $50.09, and closed at $44.90; so not bad.
What does the successful Twitter IPO mean to your small business? Well, the future is always uncertain, but one very likely possibility is the Twitter will likely cost you more money. After 7 years of amazing growth in users, Twitter has never made a profit. And if there is one thing stock holders are going to demand is profits. Plus, user growth is slowing, especially in the US (according to “Business Insider”) 85% of Twitter’s currently revenue comes from advertising, and it seems a logical expectation that if new users are slowing, the path to break even will be through maximizing more advertising potential. So that means that maybe Twitter paid advertising is a real bargain now.