Twitter: Great Growth, Terrible Profitability (Reuters)
Twitter filed its initial public offering (IPO) documents on Thursday, giving potential investors their first peek into the financial underpinnings of the social media giant. And what they saw wasn’t for the faint of heart. The Silicon Valley stalwart tripled its revenue in 2012 to some $316.9 billion and sped up the pace to total sales of $253.6 in the first half of 2013. Unfortunately, it lost $69.3 million during those same six months — all of which falls in line with analysts’ estimates. With 87 percent of revenues coming from the highly volatile pricing within the online advertising market, Twitter’s ability to earn a profit is a big question for investors. We’ll just see how that situation affects the demand for the company’s shares when offered.
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