Twitter Stock Premium: Worth More Than Facebook?

Your next video will start in

Recommended Videos

  • Info

  • Comments


Nov. 5 (Bloomberg) -- Cristina Alesci updates the latest Twitter IPO news on Bloomberg Television's "In The Loop." (Source: Bloomberg)

They will price above the range is what we are hearing.

It got all little more expensive to buy twitter yesterday, you racing the disc -- in racing the discount we saw.

Twitter said he would be conservative.

It is now actually more expensive on a price-to-sales ratio basis than facebook is, and just to put this into context, many ipo's, in fact, the majority, have not increased the range despite a robust equity and ipo market.

This shows you another data point as evidence to show that how much euphoria there is out there.

Q this euphoria -- this euphoria -- explain to me what it is like.

Twitter has tremendous timing when it comes to the ipo if you look at what the equity markets have done, on pace to reach records.

The bloomberg ipo index -- investors pushed back to a record yesterday.

We see momentum and twitter is going to take advantage of that.

It seems they do not want to leave that much money on the table for investors.

This is all, by the way, against the backdrop of a company that is still not profitable, and there is still questions about the ability to grow at a rate investors would be excited about.

People are willing to overlook that the company does not make money and growth is slowing.

They tell a compelling story saying that they have mobile users and advertisers tied to mobile revenue.

That is a big part of their story.

They are also telling investors they have projections on margins that will increase over 70%. that is pretty impressive.

Part of this is looking at the numbers, and that a large part is also emotional.

Investors are excited as a social media play.

They are willing to take the risk.

They are betting twitter has the holy grail of merging content with advertising.

If you can blur the line, you can create compelling advertising that users will cli ck on, and every time they do, twitter gets paid.

Thank you, christina alicia -- cristina alesci.

I'm joined by jessica.

You say no matter what, twitter is a smart investment.


I do, and even numbers-wise.

It is the last of the big three social networks to go public.

They have the ability to learn from the other two.

Facebook and linkedin.

As well as google.

They combine what makes facebook successful and google successful in that it can create a self- search platform and have the benefit of that technology that google has created, but they

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


BTV Channel Finder


ZIP is required for U.S. locations

Bloomberg Television in   change