Where Will Twitter Close Today? Poll

Tickers in this article: FB TWTR

NEW YORK (TheStreet) -- Social networking site Twitter is gearing up to go public with shares scheduled to begin trading today. Where it goes is anyone's guess given the company's business model, growth prospects and other questions surrounding the high-flying social media platform.

Shares priced at $26 in the initial public offering, raising $1.82 billion in the process, as the company sold 70 million shares to further fuel its growth prospects.

Twitter is growing exceptionally fast but has yet to turn a profit, a reality that has scared away at least some investors. Twitter reported $422 million in revenue through the first nine months of 2013, an increase of 120% from year-ago levels but GAAP net losses rose approximately 90%. Adjusted EBITDA grew to over $30.7 million through the first nine months of 2013.

The company did have more than 230 million monthly active users (MAUs) at the end of September with more than 100 million daily active users. Of those 231.7 million MAUs, 52.7 million were in the United States and 179 million were internationally, up 30% and 41%, respectively, from the three months ended September 30, 2012.

Several analysts have already started to put price targets on shares, similar to what was done when Facebook went public. Pivotal Global Research analyst Brian Weiser gave Twitter a "buy" rating with a $29 price target, highlighting the company's 35%-to-40% adjusted EBITDA margins.

Sterne Agee analyst Arvind Bhatia said the shares could be worth between $25 and $32 in the next 12 to 24 months. Topeka Capital Markets analyst Victor Anthony gave a price target of $54, noting "Twitter has less than 1% of a $1 trillion-plus addressable market. Opportunities exist to expand into search, commerce, more aggressively into video and even payments."

--Written by Chris Ciaccia in New York

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