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With IPO looming, Twitter takes on losses, wary investors

Sharon Gaudin | Oct. 7, 2013
In wake of Facebook's tumultuous IPO, Twitter needs to come out strong

Twitter, simply put, has a lock on immediacy in the social networking world.

If there's a tornado, a high-profile political debate or tragic accident, users flock to Twitter to get information or comment on the event.

The success of Twitter has been troubling for Facebook, the world's largest social network, despite Twitter's smaller user base. To try to gain some of Twitter's immediacy, Facebook has begun using T witter-like hashtags, testing Twitter-like Trending Topics and recently unveiled APIs that enable news organizations to tap into user comments and display them online or on TV in real time.

That kind of mainstream exposure and lock on immediacy could make Twitter a valuable commodity.

"Twitter is positioned really well for its IPO," said Patrick Moorhead, an analyst with Moor Insights & Strategy. "Twitter's immediacy is what differentiates it from Facebook and LinkedIn, which is important to investors. Savvy investors know that differentiation and barriers to competitive entry are key to a good IPO."

 

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