There's 100% Chance of a Twitter Stock Pop: Gaskins

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Nov. 4 (Bloomberg) -- Francis Gaskins, president of, discusses Twitter's IPO valuation with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

California via skype.

What do you think about this price.

Any risk twit core follow in facebook's footsteps?

No, i really don't think so.

I think even if you look at $20 billion market cap, that would be price $3700, i think tomorrow will trade between -- wednesday, trade between $35 and $40. if you look at user growth, which is interesting, facebook's user growth really the last year and a half hasn't been that much.

A billion user and now a billion three.

What happened with facebook they figured out how to monetize their user and worked with a mobile campaign and extra revenue sources.

I think the same thing with twitter that will happen is they have the three main revenue sources, promoter traits and trends and other one, eight new revenue sources coming out.

They will work with the nfl.

Sub service advertising platform, go after the international and then they have the other revenue generators.

I think all of that could come together and play very, very nicely.

They had a deficit going into it of $866 million.

They need the i.p.o. proceed to make their business happen f you look at valuation and look at the great of growth for the six months ending june of this year and compare with facebook and linked in, twitter had 54% growth.

Linked in 42% and facebook 34%. so in terms of the top-line revenue growth comparative bases, which is really important, they have a higher revenue growth.

Also, their charter range is five times 35% to 40%. their growth margin is 63%. target there is high.

Facebook is 73, linked in like 88. so they have a really good, aggressive income targets.

And i think when everything comes together, it will be fine for them.

All right.

Any concern about what cory mentioned earlier, twitter's operating costs are rising fast er than sales?

They're paying a lot for r. & d and talent?

They're building revenue streams.

Eight introduced since may so that takes a lot of effort and they're expanding, self-service, overseas advertising.

What they're doing is betting the farm.

I think it will work out ok for them.

What do you think they should use the money they raise for?

Where would this money be best served?

It would be best served to implement their plan, which is to flush out their revenue stream.

A lot of people think the employer is 140 but it's a lot more . when growth line and top objectives, it's a lot more.

They're increasing top line revenues to get margins up and underneath the compound increase in sales, that will be very impressive.

Now, say twitter prices at the high end of the range or even slightly higher because it is oversubscribed, what do you think the chances are of a stock pop versus drop on the first day of trading?

I personally think it's there's 100 chance of stock pop, not a drop.

What's happened is, i was checking with some of my investment friends over the past three, four weeks and four weeks ago said twitter is just a tweet platform.

It's a lot more than a tweet platform.

I think with facebook, there the taxicabs in new york, drivers talk to you via facebook.

Everybody knew facebook and what facebook was about.

I think twitter has a lot under the covers.

They will be revealing a lot.

And people don't really understand twitter, or the revenue model.

And that's where it's good toll become public and people not to totally understand it.

The other side, however, all of the social networking stocks that came out in 2011 piqued in their first hour, except maybe linked in, had did go down and came back up.

Don't know if people should rush in and buy it.

People could get overly enthusiastic and it's only a billion seven -- i feel not very much.

Which would not take a lot of extraneous users to pop it.

I think tomorrow, thursday it will trade 35, in the 35 to 40 range unless something else

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


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