How Does Twitter Measure Up to Social Media Peers?

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Oct. 4 (Bloomberg) -- Francis Gaskins, director of research at and president at, discusses Twitter’s growth rate in users, top line revenue and gross margins compared to other social media companies. He speaks on Bloomberg Television’s “Bloomberg Surveillance.”

Hours to go through the numbers, what is your number one question about the long-term viability of this business of a public company?

The question i have is -- what is happening with the growth rate in the number of users?

Which seems to be declining a little bit right now.

That's an interesting one.

This is the heart of the matter.

It's a 236 page document and you are legendary for going through every page of an s1 document.

There is the growth rate of the users.

We don't really know who all those users are, do we?

No, we don't know who they are but what's interesting to me is i have looked at the come parroted of -- i have compared it with linked in and facebook and what really counts is the growth rate in top line revenue for these kind of ipo's. twitter had a 60% growth rate for the six months into june this year vs 2012. facebook had 29%. what is the gross margin and what is the growth rate in the gross margin?

Linkedin and facebook are both flat.

The other thing you are great at is taking the temperature of the roadshow.

What do you expect to see in the twitter roadshow that is different from the facebook roadshow?

Twitter is run by a group of professionals.

It took 12 months for facebook to get into the professional mode but once they did, the stock went up.

Twitter has the button-down approach down right now.

They have a great set of vc's and they will do well in the roadshow.

Twitter has made a couple of notable acquisitions and partnerships lately.

How much stock you put in these numbers?

They don't add to the cumulative effect of these new deals.

They made interest in acquisition last year.

The strategy is interesting.

They are trying to be more efficient with tv advertising and figure out a way of that they can skim more off the advertising in television market.

Tom was watching the red sox and he was treating other people so they can target you.

It's a unique strategy.

Most of the other platforms are distinct ad words but twitter says they will partner with tv.

2/3 of their revenue has come from mobile.

Francis, my question is about the price.

They cannot price it too rich because they want to avoid the facebook fate but they cannot go too low.

How do they do that?

It's a $13 billion projected price.

In 2014, they are estimating $1 billion in sales of that is 13 times revenue for 2014. when people look ahead, that is a favorable comparison.

Let's ask you our twitter question of the day -- what is the question you would ask at the roadshow?

My question would be -- the specifics on the growth rate of users from the filing -- is it from the june quarter compared to the march quarter?

I would say how are you going to boost the number of users?

I love him.

He has a bs factor of zero.

It is a simple website but has everything on it.

He takes 236 pages and distills it right down.

It is day four of the government shutdown and comedian stephen colbert had a field day.

Take a listen.

It is day three of the

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


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