NEW YORK (TheStreet) -- Doug Kass, a RealMoney contributor and president of Seabreeze Partners, is bullish on the Twitter IPO, he told TheStreet's Debra Borchardt.
Twitter is expected go public sometime in the first half of November. Kass said right now it is taking the spotlight from the product launches of other companies, most notably Apple (AAPL).
Kass said Twitter has a huge "runway" of upside potential because it has monopolistic traits and no real competitors. This is evident by its top-line growth, which recently grew over 100% and is expected to remain elevated for quite some time.
While Facebook (FB) recently generated 50% growth in sales, Kass suggested it will fall to 30% in a few years whereas Twitter's will only fall to roughly 75%.Regarding the initial public offering, Kass is willing to be a buyer up until $32.50, his cutoff point. The stock could double within its first month of trading, he added.
Unlike the Facebook IPO, which was huge compared to Twitter's planned IPO, Twitter only plans to offer a "sliver" of its holding to the public, which should result in a valuation of roughly $12 billion to $12.5 billion, Kass said. He concluded the stock isn't just a fad or a fly-by-night service. In other words, Twitter is here to stay. -- Written by Bret Kenwell in Petoskey, Mich. Follow @BretKenwell
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