Moreover, the company said that it's "assymmetric model" has value. While Facebook and LinkedIn have reciprocal user relationships that require consent between friends or contacts, Twitter users can follow whomever they choose, allowing for one person to have an audience of millions.
Twitter has not priced the shares it will offer to the public. Establishing the worth of social media companies can be difficult.
Twitters peers ranges from "modestly overvalued (Facebook) to inexplicably overvalued (LinkedIn)," as Morningstar's Summer described it in a recent note.
The Twitter IPO will test whether promiscuity deserves a premium.--Written by Chris Nolter in New York
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV