Twitter reveals it plans to raise $1B in its initial public offering, but also announces that it is still unprofitable.
“It's spending money big to grow, but it's not yet making enough money from ads to be profitable,” reports CNN’s Christine Romans.
"So they want to sell share shares to the public to make money."
But the question is whether this will be a repeat of the disappointing Facebook opening of last year. And Twitter's growth remains an area of concern.
“At 218 million users, how are they going to grow and make money?” Romans asks.
If Facebook—up 85% this year, is any model, Twitter has the opportunity to prove itself.
“Once you can show that you can make money in a mobile space, or you've got action in the mobile space, boom, Wall Street likes it.”
And for what it’s worth, unlike Facebook at the time of its IPO, CNN Money reports that Twitter's mobile business is currently booming.