Twitter Roadshow Convincing to Believers: Weiser

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Oct. 25 (Bloomberg) -- Brian Weiser of Pivotal Research Group gives his impressions Twitter’s IPO roadshow and the company’s valuation. He speaks on Bloomberg Television’s “Bloomberg West.”


The major thing investors have to get over is that this is not a proven business model.

If you trust in the management, you get very comfortable with it.

What do you think of the price range?

That would value twitter at 10 $.9 billion, lower than some valuations we heard out there -- $10.9 billion lower than some valuations we heard out there.

We had the same problem with facebook.

Most people were off by 200 million shares in their estimates it is coming in at probably $12 billion, $13 billion.

It is probably a conservative price.

What about the latest numbers in terms of user growth versus revenue growth?

We know the average revenue per user is less than 50%. there are different sized businesses.

How do the numbers stack up to you?

The numbers look good for a company at its stage.

They have done really well.

-- well, operationally.

Users are not that important at the current scale.

A lot of investors will ultimately be focusing on the revenue growth.

They just need the beat on the street to generate this kind of revenue growth.

Are you saying users are not important right now because twitter has a lot more potential to get a lot more users?


they are big enough.

They could never grow their user base, and they would be fine as a business.

They're never going to be facebook.

It's almost impossible to imagine how they could be facebook.

They are a niche product.

At the roadshow, they have to explain to investors what exactly twitter is here it.

The vast majority of institutional investors have never looked at twitter and probably never will.

You think it could be interesting to see how the institutional versus retail investors breakdown.

Why is that?

It will say something about where the company wants to be.

There may be a retail investor that is paying more for the dream.

Institutional investors probably looking at metrics.

A retail investor is probably more familiar than the product than an institutional investor.

He will face me about where the company wants to go and how it wants to be -- it will say where the company wants to go and how it wants to be.

It sounds like you do believe that from a business perspective.

It's entirely possible they could have 100 million monthly checking out twitter.

It's never going to be as ubiquitous as something like facebook.

It is about the advertising opportunity.

They have not even started to generate ad revenues in most countries around the world.

They are at a state where when they negotiate with large advertisers, they say 94 of the top 100 advertisers are working with them here.

Their goal is to get the numbers up to 250, 500, then a million.

Brian wieser, thank you for

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


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