NEW YORK (TheStreet) -- One of the most highly-anticipated floats of 2013, Twitter's (TWTR) stock price is dominating business headlines as analysts speculate where shares could head. Priced at $26 a share, the IPO will value the company at $14.1 billion and even higher if underwriters capitalize on the option to purchase shares in addition to the 70 million for sale.
Yet to turn a profit, the high valuation is sparking concerns it could replicate Facebook's (FB) IPO failure last year when the latter lost more than half its initial valuation within three months of its float. Some analysts, however, believe shares have much room for growth, Cantor Fitzgerald's Youssef Squali among them.
In the quarter ended September, Twitter reported a loss of $64.6 million compared to a loss of $21.6 million in the year-ago quarter. Commentators have begun to flesh out the case for how the micro-blogging platform can turn a profit and edge out competitors.
Twitter shares opened at $45.10 shortly before 11 a.m. EST. The stock was trading at $45.74 by early afternoon.
Fellow social networks have been buffeted by the hype. Facebook is 1.3% lower at $48.50, while LinkedIn (LNKD) has dropped 2.3% to $215.66.
TheStreet Ratings team rates Facebook Inc as a Hold with a ratings score of C-. The team has this to say about its recommendation:
"We rate Facebook Inc (FB) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and impressive record of earnings per share growth. However, as a counter to these strengths, we find that the company's return on equity has been disappointing."
- You can view the full analysis from the report here: FB Ratings Report
TheStreet Ratings team rates LinkedIn Corp as a Sell with a ratings score of D+. The team has this to say about their recommendation:
"We rate LinkedIn Corp (LNKD) a SELL. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income and disappointing return on equity."
- You can view the full analysis from the report here:LNKD Ratings Report