Twitter is set to launch its Initial Public Offering later this week and it’s expected to raise $1 billion—depending on the IPO price. Twitter’s estimated market capitalization is between $17 billion and $20 billion.
Yet, like so many Internet companies before, Twitter makes no money. It generated a $69 million loss on revenue of $254 million for the first 6 months of 2013.
Why, then, is Twitter’s IPO so highly anticipated by Wall Street investors?
Julia Boorstin, CNBC’s crack journalist covering media and entertainment is with me to discuss this.