Twitter’s Big Opening Provides Company Cash to Grow

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Nov. 7 (Bloomberg) -- Bloomberg West Editor-At-Large Cory Johnson examines what the run up from Twitter’s IPO price of $26 means for the company’s ability to grow and adds perspective on how success on Wall Street differs from success for the company’s service. He speaks on Bloomberg Television’s “Market Makers.”

Of the window right now?

They actually are.

There are people dancing on the streets.

People are watching television looking at this pricing, trying to imagine what this means for them personally, i am sure, and watching their company take center stage in the global business india, on a day when there -- media, on a day when there is other big news like the ecb rate that.

Looking at my model, it is a $32 billion market cap, 59 times sales, making twitter the most expensive stock in all of technology on a price-to-sales ratio.

That also means twitter will raise $2 billion for their own coffers, allowing them to extend their runway, and run a profit- three business as they build a bigger reach.

Cory johnson, i do not want to be the spoiler here, but everyone remembers the facebook open as being a debacle.

The comparisons are inevitable.

Everybody remembers the glitch at the nasdaq and incompetence beyond that that prevented the stock from opening in a timely fashion, but facebook" that day and traded as high as $45 at $338 ipo.

This will not be -- after a $38 ipo.

This story will not be over on day one, will it?

There is business and wall street.

Facebook is a much bigger business, a much more successful business that throws off billions in free cash flow.

Twitter is nothing like that.

It is smaller in regards to facebook -- users, any metric you want to pick, revenue, profits, user growth -- twitter is not even on the map compared to facebook.

A lot of times, we confuse what is happening on wall street with what is happening here at what is happening is twitter is at the early stage of doping what they hope to be a big business.

Wall street is giving them a lot of money to make that happen, but they are a much earlier stage.

They might never get to the size and scope of facebook.

From the wall street perspective, do they need to?

I am speaking to guys that say they did not even go to the roadshow, they did it for a trade.

When it comes to investing, people just want to make money.

I think what wall street is doing with the stock, and it could be anything -- selling widgets or whatever.

I think the way they placed the stock was interesting.

Your reporting about putting so much stock in the hands of goldman sachs, and sprinkle this around.

The leader during bubble, does anybody remember what band -- web band?

All of the goldman clients that were furious yesterday and this morning when they got lousy allocations, how furious will they be?

Do they want to be on the bad side of anthony not all -- noto?

Keep in mind, for all of this talk about twitter wanted a low price, they only put 12% of the shares out there.

A fully diluted basis is about 10%. they were gaining the business as well.

If they want to come to the market with a secondary and sell from personal shares, leading some of their vc's out of the deal, they will benefit from the bump that in some ways was manufactured from twitter.

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


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