What to Expect From Twitter's IPO Pricing

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Nov. 6 (Bloomberg) -- Conversocial founder Joshua March, Mashable's Christina Warren and ZT Wealth's Max Wolff discuss what to expect from Twitter's IPO pricing. Bloomberg's Jon Erlichman also comments. They speak on Bloomberg Television's "Street Smart." (Source: Bloomberg)

I want to start with you.

You were there right outside headquarters.

I imagine there's a lot of excitement, and a lot of anticipation.

What is the thought right now on where we will see this price?

Look, i think this is a company that is clearly positioned on wall street as a growth stock.

Look at how quickly revenue has been growing, and that certainly tells you that story.

The fact that it is not a profitable company makes it even much more of a growth stock, given that as you highlighted, there has been some pretty healthy demand for it on the road to the ipo.

The business story behind twitter is still in the early innings and might not match up with what some investors want.

We heard from a number of investors on the roadshow saying they do not understand how to properly value the company if they do not know when it will be profitable, but does that really matter to the average employee here at twitter who is focused on how they make the advertising products better and increasing the overall number of users?

A lot of things that can improve by being a public company.

You really have two stories playing out, and i think what you will see tonight is a company priced on it being one of these fast-growing young technology companies.

Do not forget, this is a company coming out a lot faster than, say, ace, which one -- van, say, facebook, which one could argue was quite mature.

Twitter has been around for quite a while.

Not that long.

Not like facebook.

In the scope of a technology company, it has been a long time since early employees were in there.

It is already at the stage where it will have almost half $1 billion in revenue.

There's now a growing consensus that an ipo is ok to do, so i think it is great that it is coming out and giving people a chance to buy and a much earlier stage.

Is this a company you think really can survive for the long haul?

I think it can.

What is different about twitter is immediacy.

They are the place to go for breaking news and the place where if you want to be in that moment you can really succeed.

I think they made tremendous strides on the advertising and with television networks.

Networks have bought into the idea that ratings go up the more people tweet during the shows.

You have really only scratched the surface.

They are only just beginning.

That's a humongous revenue stream going forward, especially if they can continue to build out user ship and their activity on mobile.

Is this an activity that can really boost the monetizing of such events?

Can it really scale that profitability?

We will see in the future.

Anyone buying today would have to be a fool.

You either believe in the future or walk away from this.

I think twitter has become the first draft of history.

If we are honest with ourselves, that gives it a permanent and the global psyche.

It has conquered mobile, and now it has to monetize it.

It has not really been in the monetization game, and it is already going to touch up on the run rate of $1 billion a year.

It can grow, but it is unambiguously not there yet.

Saying 20 could fail is like someone in the 1930's saying broadcast tv is going to fail.

It is probably the most important media channel on mobile right now.

It is a constant used stream coming in.

In terms of monetization potential, the vast majority of revenue right now is still coming from advertising.

They are only just starting to look at visual advertising, video advertising.

They just made the change in the last week or two that images are now always on the stream, and that kind of stream has significantly more potential.

You were one of the early people on twitter.

Early adapter?

Very early adapter.

Christina has a very -- engaging story.

Very engaging story.

Tell us about it.

My husband proposed to me on twitter in 2009. there's your answer.

How long did it take you to see this pop up in your feed?

Were you watching twitter all the time?

I was at a tech conference, actually, and i remember going down the elevator, talking with people going to a restaurant and checking my twitter client.

I saw it, and i saw the reaction from dozens of other people wanting to know the answer.

For us, it was perfect because we were able to share the experience with our friends.

My mom thought it was great.

I think it highlights what makes twitter so great, which is that it was this instant way to broadcast, and you can also reach this much larger audience.

You could have a whole separate show on this, right?

I want to know, where was the guy?

Did you see him soon after?

Is he still have to come up with a ring?

Obviously, you have one on.

A lot of questions sort of unrelated to twitter.

We are talking about twitter going mainstream.

Those of us in the media use it quite frequently.

Those of us in finance use it.

You can follow stocks quite readily on their.

But will the rest of america use it?

Is the company doing something the public wants globally immediately on mobile?

Yes, yes, yes.

The question is will it make money for people who allocate it and put it in their portfolio?

It has the potential.

Looks like it will do in television what it has done in journalism.

It is going pretty well.

This is a company that just beat out facebook largely to win the second screen capability, and that will be a huge monetization event when it gets there.

What will they do what all this money?

It will still be a relatively small warchest.

Twitter is now one of the players in big tech where everyone is sitting on millions of dollars of credit lines, and they are arriving at a place where they can compete and use their shares to buy acquisitions.

Twitter has acquired a lot of it monetization -- i get 140 characters.

It was hard to get around -- it was hard to wrap my head around it first.

Six seconds of video i do not get.

You could share a small amount of content.

Very small.

One of the reasons restricted content works very well is that the longer the content, the more time, the more effort goes into it.

Only a very small amount of people in the world can produce a bloomberg tv show, right?

When it is a you tube video, a gets a big bigger.

Everyone can make a six-second video.

Who wants to consume six seconds of video?

It is still kind of early days.

People are still working that out.

But everyone said the exact same thing about 140 characters when that happened.

The crux of it is is a major shift in how people are communicating -- away from a stop, one-on-one channels like e-mail, and moving into channels that are public, and twitter is the vanguard of that.

Facebook is doing very well in you were there right outside headquarters.

I imagine there's a lot of excitement, and a lot of anticipation.

What is the thought right now on where we will see this price?

Look, i think this is a company that is clearly positioned on wall street as a growth stock.

Look at how quickly revenue has been growing, and that certainly tells you that story.

The fact that it is not a profitable company makes it even much more of a growth stock, given that as you highlighted, there has been some pretty healthy demand for it on the road to the ipo.

The business story behind twitter is still in the early innings and might not match up with what some investors want.

We heard from a number of investors on the roadshow saying they do not understand how to properly value the company if they do not know when it will be profitable, but does that really matter to the average employee here at twitter who is focused on how they make the advertising products better and increasing the overall number of users?

A lot of things that can improve by being a public company.

You really have two stories playing out, and i think what you will see tonight is a company priced on it being one of these fast-growing young technology companies.

Do not forget, this is a company coming out a lot faster than, say, ace, which one -- van, say, facebook, which one could argue was quite mature.

Twitter has been around for quite a while.

Not that long.

Not like facebook.

In the scope of a technology company, it has been a long time since early employees were in there.

It is already at the stage where it will have almost half $1 billion in revenue.

There's now a growing consensus that an ipo is ok to do, so i think it is great that it is coming out and giving people a chance to buy and a much earlier stage.

Is this a company you think really can survive for the long haul?

I think it can.

What is different about twitter is immediacy.

They are the place to go for breaking news and the place where if you want to be in that moment you can really succeed.

I think they made tremendous strides on the advertising and with television networks.

Networks have bought into the idea that ratings go up the more people tweet during the shows.

You have really only scratched the surface.

They are only just beginning.

That's a humongous revenue stream going forward, especially if they can continue to build out user ship and their activity on mobile.

Is this an activity that can really boost the monetizing of such events?

Can it really scale that profitability?

We will see in the future.

Anyone buying today would have to be a fool.

You either believe in the future or walk away from this.

I think twitter has become the first draft of history.

If we are honest with ourselves, that gives it a permanent and the global psyche.

It has conquered mobile, and now it has to monetize it.

It has not really been in the monetization game, and it is already going to touch up on the run rate of $1 billion a year.

It can grow, but it is unambiguously not there yet.

Saying 20 could fail is like someone in the 1930's saying broadcast tv is going to fail.

It is probably the most important media channel on mobile right now.

It is a constant used stream coming in.

In terms of monetization potential, the vast majority of revenue right now is still coming from advertising.

They are only just starting to look at visual advertising, video advertising.

They just made the change in the last week or two that images are now always on the stream, and that kind of stream has significantly more potential.

You were one of the early people on twitter.

Early adapter?

Very early adapter.

Christina has a very -- engaging story.

Very engaging story.

Tell us about it.

My husband proposed to me on twitter in 2009. there's your answer.

How long did it take you to see this pop up in your feed?

Were you watching twitter all the time?

I was at a tech conference, actually, and i remember going down the elevator, talking with people going to a restaurant and checking my twitter client.

I saw it, and i saw the reaction from dozens of other people wanting to know the answer.

For us, it was perfect because we were able to share the experience with our friends.

My mom thought it was great.

I think it highlights what makes twitter so great, which is that it was this instant way to broadcast, and you can also reach this much larger audience.

You could have a whole separate show on this, right?

I want to know, where was the guy?

Did you see him soon after?

Is he still have to come up with a ring?

Obviously, you have one on.

A lot of questions sort of unrelated to twitter.

We are talking about twitter going mainstream.

Those of us in the media use it quite frequently.

Those of us in finance use it.

You can follow stocks quite readily on their.

But will the rest of america use it?

Is the company doing something the public wants globally immediately on mobile?

Yes, yes, yes.

The question is will it make money for people who allocate it and put it in their portfolio?

It has the potential.

Looks like it will do in television what it has done in journalism.

It is going pretty well.

This is a company that just beat out facebook largely to win the second screen capability, and that will be a huge monetization event when it gets there.

What will they do what all this money?

It will still be a relatively small warchest.

Twitter is now one of the players in big tech where everyone is sitting on millions of dollars of credit lines, and they are arriving at a place where they can compete and use their shares to buy acquisitions.

Twitter has acquired a lot of it monetization -- i get 140 characters.

It was hard to get around -- it was hard to wrap my head around it first.

Six seconds of video i do not get.

You could share a small amount of content.

Very small.

One of the reasons restricted content works very well is that the longer the content, the more time, the more effort goes into it.

Only a very small amount of people in the world can produce a bloomberg tv show, right?

When it is a you tube video, a gets a big bigger.

Everyone can make a six-second video.

Who wants to consume six seconds of video?

It is still kind of early days.

People are still working that out.

But everyone said the exact same thing about 140 characters when that happened.

The crux of it is is a major shift in how people are communicating -- away from a stop, one-on-one channels like e-mail, and moving into channels that are public, and twitter is the vanguard of that.

Facebook is doing very well in that.

Few people have worked out how to monetize mobile significantly, but twitter is doing a very good job.

There is huge potential still to be tapped, and it is tapping into something which is a fundamental shift in how people are communicating, and that will be massively valuable.

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

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