Twitter may be able to demonstrate value to investors better than Facebook did in 2012 because Twitter has such a strong presence on mobile devices, Blau said. On Monday Twitter purchased MoPub, a mobile-focused advertising exchange system that allows advertisers to bid for ad space on mobile apps.
Recent acquisitions by Twitter including Vine or Twitter Music could be used to generate advertising, or the website could force users to pay to access them, Blau said.
These changes may be coming soon. Now that Twitter has announced its plans to go public the company could make an IPO as early as December, Ackerman said. A provision in the 2012 JOBS Act allowed Twitter to file confidentially for an IPO with the government. That means the company can keep its SEC filings secret until 21 days before the company seeks out investors. Once that information about the company is made public, Twitter could benefit from going public in 2013, rather than wait until 2014 and allow public excitement to fade, Ackerman said.
"External events can disrupt the runup to the event," Ackerman said. "You don't want to be out there too long."
Public offerings typically don't happen around summer or winter holidays when investors will be distracted, but Twitter "could break through that fog because it is so high profile," Ackerman said.