There Will Be a Pop in Twitter Stock: Om Malik

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Nov. 6 (Bloomberg) -- GigaOm's Om Malik and Bloomberg Contributing Editor Paul Kedrosky discuss the pricing of Twitter's IPO. They speak with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

Geek, also a bloomberg contributing editor -- paul kedrosky.

Paul, i will start with you.

What should the price be?

What they can get away with and what it should be our different good what they can get away with, there is no question they could price it considerably more aggressively.

Watching this thing get walked up all the way is a classic sign from investor standpoint it seems to be priced all the way up.

I think there is a feeling within twitter that we needed to have something that was sustainable.

Facebook goes up to $40.50. i'm expecting the price will support a 25-50% move at first.

Do you think it is fair, the high end of the $25 range?

Yes it is, and i think you will probably see them price it even higher.

This stock will have a lot of retail investors, a lot of people are interested in this company as active participants.

This will be an interesting stock, not only on day one but also within the first two or three weeks.

We will see the little investors try and come in.

Let's talk about day one.

He saw what happened with facebook on day one.

Any chance that on day one, tomorrow, that things could go wrong?

Computers fail.

Imagine this happening.

The biggest risk for a stop -- for a stock in his opening is high retail interest.

People say i don't care what the prices, i just want to buy this.

Stuff like that can calls a really unbalanced opening at the beginning.

The classic stock will have a ton of retail interest.

If you see it anywhere, you will see it with a stock like this.

I was speaking with you last week on this very issue.

You tell me that you thought tomorrow would be drama free.

Do you still think that?

Do you still think tomorrow is going to be smooth sailing?

If the stock goes up, it is definitely smooth sailing.

There will be no drama from that perspective.

I don't expect the exchanges to not work and i don't expect the stock to go jo tomorrow, but this is a company that has done a really good job of managing expectations.

What the market wants to see -- i still don't feel there is going to be any drama around the company, except the good news and the noise of popping champagne corks.

We talked about how to twitter still has not turned a profit.

How much does that worry you, and if that does not worry you, what does worry you?

People get stuck on these things.

Amazon has not turned up off -- turned a profit in 20 years.

But that is by choice.

You can always scale up with more capital.

Twitter chooses to grow the business fast, so it is burning more cash, but it does not mean they can turn on the profit margins.

This company has a long history of turning management.

All kinds of messy reasons.

Greg schiano been there almost every step of the way.

You were the first journalist that found out about twitter in the early days.

Does it worry you that the chaos at twitter will never be -- that twitter will never be old fully graduate from the tension, the tension of the early days will always hot them?

One thing that has been a constant with wood or is that despite all that drama that people talk about at twitter, twitter has succeeded because of its customers, which is you and i. you have helped define the service in such a way that it has constantly evolved.

It has management that was enlightened enough to pay attention to its customers, which is the actual users of twitter.

Now, when going to the hands of wall street where you have to meet targets and grow your revenue and your user base, they're going to have to do some crazy things.

That is when they will start to go up against the end customer, the user, you and i. tutor will have to figure out that balance.

I asked that question on the conference today.

The former ceo at facebook.

He pointed out that as long as they can maintain the short, terse nature of twitter, they can continue to succeed, despite all those pressures from wall street.

I look at facebook and i just say facebook is a company that went from being a fun place to go to becoming a laborious kind of environment.

Going to facebook seems like work because there are so many ads and so many conflicting messages.

I think that is a challenge kedrosky.

Paul, i will start with you.

What should the price be?

What they can get away with and what it should be our different good what they can get away with, there is no question they could price it considerably more aggressively.

Watching this thing get walked up all the way is a classic sign from investor standpoint it seems to be priced all the way up.

I think there is a feeling within twitter that we needed to have something that was sustainable.

Facebook goes up to $40.50. i'm expecting the price will support a 25-50% move at first.

Do you think it is fair, the high end of the $25 range?

Yes it is, and i think you will probably see them price it even higher.

This stock will have a lot of retail investors, a lot of people are interested in this company as active participants.

This will be an interesting stock, not only on day one but also within the first two or three weeks.

We will see the little investors try and come in.

Let's talk about day one.

He saw what happened with facebook on day one.

Any chance that on day one, tomorrow, that things could go wrong?

Computers fail.

Imagine this happening.

The biggest risk for a stop -- for a stock in his opening is high retail interest.

People say i don't care what the prices, i just want to buy this.

Stuff like that can calls a really unbalanced opening at the beginning.

The classic stock will have a ton of retail interest.

If you see it anywhere, you will see it with a stock like this.

I was speaking with you last week on this very issue.

You tell me that you thought tomorrow would be drama free.

Do you still think that?

Do you still think tomorrow is going to be smooth sailing?

If the stock goes up, it is definitely smooth sailing.

There will be no drama from that perspective.

I don't expect the exchanges to not work and i don't expect the stock to go jo tomorrow, but this is a company that has done a really good job of managing expectations.

What the market wants to see -- i still don't feel there is going to be any drama around the company, except the good news and the noise of popping champagne corks.

We talked about how to twitter still has not turned a profit.

How much does that worry you, and if that does not worry you, what does worry you?

People get stuck on these things.

Amazon has not turned up off -- turned a profit in 20 years.

But that is by choice.

You can always scale up with more capital.

Twitter chooses to grow the business fast, so it is burning more cash, but it does not mean they can turn on the profit margins.

This company has a long history of turning management.

All kinds of messy reasons.

Greg schiano been there almost every step of the way.

You were the first journalist that found out about twitter in the early days.

Does it worry you that the chaos at twitter will never be -- that twitter will never be old fully graduate from the tension, the tension of the early days will always hot them?

One thing that has been a constant with wood or is that despite all that drama that people talk about at twitter, twitter has succeeded because of its customers, which is you and i. you have helped define the service in such a way that it has constantly evolved.

It has management that was enlightened enough to pay attention to its customers, which is the actual users of twitter.

Now, when going to the hands of wall street where you have to meet targets and grow your revenue and your user base, they're going to have to do some crazy things.

That is when they will start to go up against the end customer, the user, you and i. tutor will have to figure out that balance.

I asked that question on the conference today.

The former ceo at facebook.

He pointed out that as long as they can maintain the short, terse nature of twitter, they can continue to succeed, despite all those pressures from wall street.

I look at facebook and i just say facebook is a company that went from being a fun place to go to becoming a laborious kind of environment.

Going to facebook seems like work because there are so many ads and so many conflicting messages.

I think that is a challenge twitter needs to figure out.

They don't have that kind of leadership.

Stick around, we will

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

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