Twitter Is Pulling the Right Strings: Om Malik

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Nov. 1 (Bloomberg) -- GigaOm's Om Malik discusses what he expects will happen on Twitter's first day of trading. He speaks with Emily Chang on Bloomberg Television's "Bloomberg West." (Source: Bloomberg)

You have seen a one to many of these.

You're been following this closely.

How will this play out?

Will be uneventful?

It will be business as usual.

The first couple of hours of trading and then suddenly into a modest pace.

This is a company which has done all things right.

The exact opposite of facebook.

They know how to play.

They are pulling the right strings.

They are doing what they supposed to do.

They will price it at a price that means a lot of money on the table for investors.

But we know all of the orders are full.


I do not think they will raise the price too much.

They want -- from the psychological game which comes from the first-day bump.

This a very smart management team.


you are the first one to point out that the day the fouling came out the expenses -- filing came out and expenses were a lot higher.

How big a problem is that over the longer term?

If they are not growing as a company and their expenses are growing, it is a challenge.

If they keep adding people and add another hundred million people, it is acceptable that cost of doing -- acceptable cost of doing business.

At the same level, why are there so many people?

Why they do certain things in a certain way?

In a way which could help them lower their costs?

All of that is still in the future, we have to give them time.

One of the things investors on the roadshow resort complaint about if they do not talk enough about turning a profit.

I look at that and i just kind of, ok, maybe in a couple of months we will see they will report nice profits.

Two months later, six months later.

They have to keep growing.

A have to do that.

-- they have to do that.

What makes twitter great is also making it very weak.

The reason is that there is an api for this company which is available to developers and to wall street speculators who program and find out a lot more data on what is happening on twitter much more than wall street analysts will ever be able to find out.

It will be depending on the same metrics of what the management tells them or how people use twitter and how many advertisements show up.

That can be accessed by going to the website and looking at the api.

This a very public company in that sense.

That is going to be the most interesting part over the next 12 months.

I do believe the hedge funds will treat it like a yo-yo.

What are the big public changes they have made in the past week if they made photos much more visible on the site.

It definitely changes the look of the time i. some people are complaining and says and looks like facebook.

It is not facebook, what did you think about that?

They have to.

How would you enhance the experience for normals?

For normal people who are not used to 140 characters?

They have to find value in the system.

For many people the value is you can tweak quickly and see what is going and scan through your feet without getting -- through your feed without getting distracted?

Instagram is only 2.5 years old.

That should tell you everything.

Photos have a much more appeal for normal people.

Visual speaks more powerfully on mobile.

They are going mobile.

That is where they have to go.

They have to do this.

You are going to be speaking with jack dorsey as well as instagram next week as your big conference.

What did you plan on asking them question are experience, how experience is a driving force in today's economy.

Honestly, i am going to ask kevin about how the ads are rolling out on instagram and what he expects from them.

Hopefully, jack and i will talk about many things.

I am looking forward.

You have both of these conversations on your website.

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


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