Can Twitter Avoid Facebook's IPO Pitfalls?

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Sept. 13 (Bloomberg) -- Global X Management CEO Bruno Del Ama and Bloomberg's Jason Kelly discuss Twitter's IPO with Trish Regan, Adam Johnson and Cory Johnson on Bloomberg Television's "Street Smart." (Source: Bloomberg)

What are you thinking on this one, would you buy into this ipo?

We are going to buy into the stock.

We will i into the stock after the ipo.

We will wait for some of the prices.

Is that a concern about social media and the popularity of this product may be driving the price artificially high initially?

Not really.

What we want to see is -- we want to buy the stocks for the long term and when you go through an ipo process, there is a lot of speculation.

We want investors with a long- term holders that are there to stay.

There is some price discovery and more reflective for the long-term value.

There was already rice discovery for year-and-a-half at a cap going up.

It will be harder to know with twitter.


There has been a lot more control with our secondary market private transactions.

That is indicative of what we will see as a probable bottom for the price.

Is there a danger of this going too fast too soon?

It seems like the point you just made about the lack of information may help twitter.

That hurt facebook, the series of filings they had to do.

Also the going public process which was very different for facebook.

They had to disclose all these financials and the way that twitter went public means that they are able to keep it under the covers for much longer.

Part of the goal is that smaller companies can access public funding more quickly and readily.

Facebook had to wait for some time he for was there.

Can twitter not grow without outside funding right now, is this timing in your opinion good?

The timing seems to be good based on what we are seeing in terms of the growth ahead create and the excess of the sponsored ads, they seem to be on the right track -- on the right track.

They benefit from the same mobile tailwinds that facebook is saying.

Cory may have an opinion about that what he is hearing in the valley.

Whenever a company goes public it has to answer to analysts and people like you and me on a quarterly basis.

What is the risk that changes -- that twitter changes as they bring in ads and make quarterly earnings estimates, that will be set very high.

There's this conversation about whether you should buy shares in twitter completely ridiculous.

They do not know what the price is.

What i like to buy a brand-new car but if it is 15 million dollars, absolutely not.

There is a value that is appropriate and we do not know what they will sell the set.

Analysts will not publish until after the deal is out.

They had a lot of bank as facebook did.

We do not know what the analysis will be before the public -- company goes public.

The shortened amount of time if this list time to do the work, to understand the business and figure out what the value is of this business.

I like twitter as a medium for communication.

It is a really interesting media platform.

That does not mean that the stock is worth any price whatsoever.

We will have to know more about the financials and what the price is, too.

May be why bruno is going to wait.

The way we approach this space, we love social media and it is one of the few segments that is growing very rapidly.

They are very difficult to displace.

We want to be exposed to the major companies.

Again to that point to make sure that there is that process that allows investors to buy and sell into the stock.

It appears to be more reflective of the longer-term prospects.

Thank you and good to have you here.

This text has been automatically generated. It may not be 100% accurate.


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