Twitter valuation may hit USD20 billion mark post-IPO - hedge funds

October 8
10:24 AM 2013

According to projections made by hedge funds Ironfire Capital LLC and Gamco Investors Inc, Twitter Inc's company valuation after its public listing may hit around the range of USD15 billion to USD20 billion. Although the user growth of the San Francisco-based company had been slowing down and that it had not displayed signs of turning in profits lately, the projections were based by the funds' expectations that Twitter could increase revenue rapidly.

Sica Wealth Management President Jeffrey Sica agreed and said, "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."

Twitter would be set to expand in advertising globally after its initial public offering. The microblogging service could easily draw big advertising dollars in order for companies to tap its over 200 million active users monthly. Its filing showed its dependency on ads recently, with revenue more than doubled. SunTrust Banks Inc analyst Robert Peck expected Twitter to clock in USD1.2 billion in revenue next year with the help of new product offerings.

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