The Big Question: Should you back Twitter's IPO?

Garry White chief investment commentator, Charles Stanley Depends on market If Twitter can exploit its position to attract advertising from traditional areas, such as television, which is in decline, then it has tremendous future earnings power. However, it is still very much an early-stage company. Twitter is yet to make a profit and there is a continual need to invest heavily in its business. Indeed, management reinvested 44% of first-half 2013 revenues in research and development. Although sales are growing fast, its model means advertising has a fairly low impact on users, so...