Twitter appeals to potential investors

TwitterMicro blogging site, Twitter is appealing to the potential investors in its initial public offering to show trust in the company, claiming that it needs investments to reach higher profitability.

Chief Financial Officer Mike Gupta said in a video yesterday that the lower investments have limited the company and the company will be able to achieve higher profitability once it reap the benefits of those investments. The video was uploaded as part of the investor road show, in which Gupta and Chief Executive Officer Dick Costolo will travel from their homes in San Francisco to cities including New York, Denver, and Chicago.

The two senior executives also met yesterday in New York with IPO underwriters Goldman Sachs Group Inc. (GS), Morgan Stanley and JPMorgan Chase & Co to prepare for their presentation. The company is aiming to raise about $1 billion from the issue by taping on the popularity of the service, which is still losing money and is unable to attract advertisers to the platform.

Twitter has reportedly chosen TWTR as its ticker symbol for the shares. The social blogging network with more than 200 million members worldwide has said that it has filed S-1 to the Securities and Exchanges Commission for its planned initial public offering. Twitter is expected to be valued at up to $20 billion after its shares starts trading.