Twitter (TWTR) is probably the most anticipated IPO since Facebook (FB). Though unlike Facebook, the people at Twitter are smart and know that being greedy with the IPO price can get the stock killed on the open market. With this in mind, Twitter is probably set to IPO at a price between $17-$20. Pretty reasonable.
Here’s what I think will happen on the day of Twitter IPO:
1) The stock will open at or around $25.
2) From there, the stock will shoot up 10% more, at which point the original investors of the Twitter IPO will start unloading the stock on Muppet investors.
3) Expect some exchange glitches and routing problems.
4) I expect TWTR to close below its opening price on the day of its IPO.
5) TWTR will eventually settle down and trade in the range of $15-$20 over the next couple months, before it finally breaks out of that range and begins its march towards $50.
TWTR certainly has a lot of potential; if only they can somehow start translating that potential into actual tangible revenue/net-income.
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