Twitter's IPO Is Not Facebook

So Twitter (TWTR) has raised its initial public offering price to a range of $23-$25 from $17-$20. Is this a shock to anyone? There was absolutely no way TWTR was going to stay in the $17 to $20 range. I knew it. You knew it. Most of the world knew it. Yet the media rushed to talk about the price and TWTR's valuation based on that range just to get a story out even if, in the end, it was likely to be irrelevant. I saw very little discussion about the fact initial price ranges seldom remain especially on high profile names. In the end, I am looking for a final price of $25 or $26.

IBM (IBM) filed a suit accusing TWTR of patent infringement. This reminds me of the Yahoo! (YHOO) suit against Facebook (FB) right before its IPO. Nothing like big companies patent trolling on the eve of a high-profile IPO. This is where the similarities between FB and TWTR seem to end. Although TWTR has bumped it price, 25% on the high end of the range, we saw FB go to $38 from $28, a 35% bump. FB's roadshow was such a media spectacle it made even shareholders sick, while TWTR has been shorter and more low-key, in my view. Furthermore, TWTR has maintained the 70-million-share offering rather than increasing the amount of shares for sale like FB did right before its IPO. Finally, and maybe the biggest factor, is I see very little discussion of TWTR being overpriced. Instead, most of what I see is, "Buy TWTR up to $XYZ valuation or price." On the other hand, I recall there were lots of doubts on FB and the feeling a $100 billion valuation attempt was a bit aggressive....325 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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