Twitter has filed to go public according to a tweet on 12 September. According to the JOBS Act, Twitter can do this because their revenue is less than one billion dollars.
Twitter has about 200 million monthly active users and this is only 50 million more than Facebook-owned Instagram. While Instagram is a photo sharing app, changes in the functionality of the app are quickly blurring the lines between Instagram and Twitter. Facebook has about 1.5 billion monthly users and more than 699 million daily active users. Numbers like these are definitely threatening to the impending IPO of Twitter.
Nevertheless, Twitter is looking at doubling its revenue this year over the last and almost 53 percent of this revenue is coming in from mobile advertisements. Twitter is currently valued at a high nine billion dollars. This gives it a price to sales ratio of 15.4. This would mean that Twitter stock would be very expensive at its initial public offer.
It is possible that the IPO filing has some data that will support such high values, but that will only been known when the IPO is actually made public.
