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Twitter Attempts to Avoid Facebook’s IPO Mistakes

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Twitter, which announced its intention to go public just days after Facebook’s stock reached an all-time high, now has to find a way to avoid its rival’s mistakes.

Twitter announced it had filed for an initial public offering via a tweet on September 12, 2013, giving no financial details or further information about a timeline. It’s a far cry from Facebook’s splashy display of company information and financial records over a year ago, reports The Columbus Dispatch.

“Twitter will do everything they can to avoid anything that looks like the Facebook IPO, both on the expectations front and the execution front,” said David Pakman of Venrock Inc. He suspects filing confidentially will keep anticipations down to avoid starting out with an inflated IPO like Facebook.

Following Facebook’s over-hyped IPO, the company stock plummeted from $38 a share to just $17.55 at the beginning of last September. The stock has slowly regained momentum, with investors slowly regaining confidence in the company’s initiative. The stock finally reached an all-time high of $445 on September 11, 2013.

That means Twitter’s timing couldn’t be more perfect to go public. Investors are beginning to see the capabilities of social media networks — especially with the powerful earning capabilities of mobile advertising.

According to CNET, Twitter has been making smarter moves long before it announced its IPO filing, including focusing on mobile devices and making partnerships with major television networks and advertisers. Vine, its video-sharing service, has also seen great popularity and has attracted a user base of its own.

As CNET also pointed out, Twitter’s CEO Dick Costello has managed to create a great deal of stability in the company and get on track with the right initiatives. He’ll likely lead the company well through the rocky process of going public.

Twitter’s IPO will undoubtedly offer a wealth of opportunities for advertisers and social media professionals. The IPO will provide the company with funding in order to grow and develop the company’s monetization and advertising strategies. Marketing professionals should keep an eye on the initiatives the company rolls out as the initial stock offering nears and in the weeks following its IPO.

Photo credit: Flickr

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