But, after of all you should know about the difference between two companies Facebook and Twitter. When Twitters are gaining negative sign on its net income. Well, that true - now twitter is losing popularity, so they are losing money where at least Facebook was turning a profit at their IPO.
The giant social network have a large user base, the companies are widly divergent. Now, Facebook has a valuation around $100 billion, where twitter is below down position with only $20 billion in pocket.
When it comes the time for IPO Facebook always stay's at the safe point. In fact, looking at Twitter's filing documents, you almost wonder why it is going public now. It has ample cash reserves but accelerating losses, as it invests in its research and development budget and builds out its sales team.
The reason, we think, is that investor pressure has built to the point that Twitter needed a large liquidity event to break free from some of its oldest invested capital. For a company of its scale, there were only two options: sell or IPO. And for Twitter, that meant it only had one option. Hence its S-1. We do not say all that to indicate that Twitter is not a valuable, interesting company. It is both. But the bent of its filing docs feels more like a company heading toward an offering and not the numbers of a firm ready to enact one.
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