This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Facebook's 'Kid Brother' Twitter Is Ready for the IPO Spotlight

NEW YORK (TheStreet) -- CNBC debuted its excellent documentary on Twitter called "Twitter Revolution" earlier this week. While Twitter CEO, Dick Costolo, didn't reveal his intentions to host Carl Quintanilla on when the company would IPO, I suspect it will be sometime before the end of this year.

And, when it happens, it will be big.

Why will Twitter go public?

With the solid Q2 earnings call of Facebook (FB)a few weeks ago, any stock that is social- or mobile-related is on fire.

Facebook is up 44% since the earnings. Yelp (YELP), Zillow (Z) and LinkedIn (LNKD) have all exploded as well.

As I said in my column here last week, the good Facebook earnings woke up Wall Street to the two key facts that (1) growth in mobile is accelerating and (2) you can make a lot of money selling ads in mobile.

After more than a year, Facebook is back above its IPO price. It is finally getting big institutional buyers to believe in its model again and the power of its platform.

All that is good for all mobile and social stocks and it's why they are smoking.

What's more, Facebook delivered those numbers in the second quarter -- not the fourth quarter. For any ad-based business, the third and then fourth quarters should be the strongest quarters. So, we are likely moving into a period this fall where Wall Street analysts will continue to take up their estimates for the sector.

Twitter really sits at the intersection of social and mobile. Although it's smaller than Facebook, it was arguably a mobile company from day one of its life, while Facebook had to struggle to make the shift from web to now mobile.

So, Twitter is ready for its IPO spotlight, especially now that all the financial world seems ready to sit up and take notice.

In past years, Twitter has seemed like the kid brother to Facebook. It was younger. It revenues was smaller. It just didn't seem to get talked about as much.

But the company has really come into its own in the last two years. It has owned live television events and programming, as well as becoming a go to service for instant access to information. The old "fail whale" where the service periodically seized up is now a thing of the past.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,118.07 +11.37 0.07%
S&P 500 2,000.23 +0.21 0.01%
NASDAQ 4,571.2890 +0.6520 0.01%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs