This Day On The Street
Continue to site right-arrow
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!

Will Twitter Sell Its Soul Like Facebook Did? (Update 1)

Stocks in this article: FB P GOOG AAPL TWX CMCSA

Updated from 7:44 p.m. 9/12/2013 with an embedded video of the author's Friday morning appearance on CNBC.

NEW YORK ( TheStreet) -- Three things I have to say on news that Twitter will go public.

First, I am on record as the first person known to man to suggest "TWIT" as the ticker symbol for Twitter as a publicly-traded entity. It's timestamped in a November 7, 2012 article where I suggested Facebook (FB) and Twitter should consider a merger or, at the very least, an advertising partnership.

Just remember where you heard that bit of sheer brilliance first.

Second, while I love Twitter, I'm concerned.

There's no question the company's investors and employees should be able to cash in on an IPO. It has become the American way, at least in certain parts of the world, particularly Silicon Valley. It's the new American dream. And it's most likely here to stay. It's not a runaway American dream.

That said, I want to see Twitter become whatever Twitter can become unabated by the pesky requirements of Wall Street investors. Because, there's no question -- Twitter, simply by making the choice to go public, will wind up something other than it would have been had it stayed private.

From a product and user experience standpoint, that might not be a good thing.

To a certain extent, companies such as Facebook and Pandora (P) sold their souls to Wall Street shortly after going public.

As I explain in the above-linked article, both companies, for better or worse, abandoned their social missions for the sake of revenue and the quest for profit. It depends on who you talk to, but more than a few people -- as they continue to use Facebook and Pandora obsessively -- will tell you that increased advertising and such has hurt the user experience. And I would argue it has taken away from Facebook's mission to connect the world and Pandora's pledge to be a champion for indie artists.

Priorities get out of whack. That's just how it goes. There's really no avoiding it.

Third, keep an eye on the mobile advertising space. Right now the major players are Google (GOOG), Facebook, Twitter and Pandora. These four collect a vast majority of these fast-growing dollars. And they'll all likely continue to be in the top ten, if not top five. However, others will come to play.

As Apple (AAPL) debuts iTunes Radio, it will ramp up its iAd Network, making it more of a mobile advertising force. And don't count out big media. Names such as CNN and CNBC -- two that I follow closely -- are doing incredible things digitally. Their parent companies ( Time Warner (TWX) and Comcast (CMCSA) respectively) have deep pockets. And they're not sitting on their hands.

Time Warner and Comcast will make the digital/mobile push beyond obvious choices such as CNN and CNBC. They'll do it across their entities. And other big media will follow. These conglomerates can sell attractive packages that combine mobile, digital and traditional television advertising. Without a partnership or new and dynamic platform, Facebook, Twitter, Apple and Google (though don't forget YouTube) cannot do this.

Here's my appearance on CNBC's Squawk Box from Friday morning talking Twitter IPO with the Squawk crew and Mike Isaac of All Things D:

-- Written by Rocco Pendola in Santa Monica, Calif.

Rocco Pendola is a columnist and TheStreet's Director of Social Media. Pendola makes frequent appearances on national television networks such as CNN and CNBC as well as TheStreet TV. Whenever possible, Pendola uses hockey, Springsteen or Southern California references in his work. He lives in Santa Monica.

Select the service that is right for you!

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 18,073.17 +42.96 0.24%
S&P 500 2,091.25 +9.37 0.45%
NASDAQ 4,813.4370 +39.9650 0.84%

Brokerage Partners

Rates from

  • 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