Gadgetory

hey everyone welcome to the inside scoop I'm seen at Kara Tsuboi joined by Cena senior reporter daniel Terdiman welcome Daniel thank you big news in the social media world twitter went public this morning we sure did yeah yeah and this stock is doing pretty well I've been at what $45 $45 after being priced yesterday at $26 so that's quite a pop I know you're not necessarily a financial analyst but do those numbers surprise you does it is it surprising anyone that it is so high right now well I bet it surprises Twitter and that's why they priced at 26 but I did see some reports in the last few days that suggested you know thirty-five forty dollars for the shares so you know some people certainly were aware that it was gonna come out at that range a lot of people couldn't help but compare Twitter's IPO to Facebook's IPO year and a half ago and with Facebook you know we saw them dip really low to half its initial value before climbing back up right what do you think is different about Twitter why are they seeing such success right out of the gate what do they learn from facebook well I think first of all they they they studied Facebook's IPO and so you know some of the problems one of the things I think is that Facebook put out too many shares so it kind of diluted by deluded the value a little bit sure um plus I think that there was just some fundamental problems with Facebook they hadn't figured out how to make money off of mobile whereas Twitter really is a pure mobile service and everybody knows that they know that's where the eyeballs are these days is our mobile and I just suspect that you know they huddled with their bankers and kind of like figured out what the problems were they went with the New York Stock Exchange instead of Nasdaq so they really tried to do things very differently than Facebook Twitter might have figured out the mobile but at the same time they never turned a profit under 17 years of existence right that's gotta change now that your public right well they certainly have to hope so um you know if you look at their numbers their amount of revenue has certainly been going up and I think its young gonna be double this year that it was last year so you know the trend line is in the right direction their costs are also going up at the same time more high arms there's no guarantee they're ever gonna make money but you know I I believe in Twitter i think that advertisers seem to be you know signing up and believing in Twitter and you know there's a lot of room for them to grow the one problem is that they've kind of saturated the market in the United States and most of their advertising revenue comes in the United States so if they don't figure out how to make money off of our internationally that's where their big problem could be how does this advertising or all this growth how does that look for the average user what are we going to see different in our accounts it's really hard to say I mean you know you know you start to see those like promoted tweets and everything show up you know the big thing that Twitter's been doing is it's sort of like the amplified program which is partnering with TV networks another you know like ESPN and NFL people who create video content and so they're figuring out how to embed video content into tweets and I think that's where we'll start to see more advertising it'll be you know I think the advertising is going to be you know prominent you like you'll want to watch NFL clip you'll have to go through an ad first and so you know the age of a tweet just being 140 characters and nothing more I think that's long past Wow now assuming Twitter closes today you know in that steady mid forties range what do you think this is really going to mean for the landscape of social media sites and their public offerings in the future well it's good i mean if you if you're a pinterest or you know snapchat coming like that you've got to be you know like chomping at the bit right now also squares we know jack dorsey's other company yeah you know they there was a wall street journal story yesterday that said squares starting to think about a an IPO for next year so yeah i mean the the market looks like stock market has is doing very well right now twitter having its stock price do so well you know it's got its kind of look good I know all of us here at Cena are gonna keep a close eye on this and people around the world to Twitter followers especially absolutely thank you so much Daniel tournament senior reporter for cnet I'm Cara tsuboi thanks for watching the inside scoop