SAN DIEGO (TheStreet) -- Well before Twitter (TWTR) went public with a market value of $14 billion, I remember going on CNBC with others shaking our heads at what at the time was believed to be a ridiculously high $10 billion valuation.
The value was extrapolated from the trading of its private shares on the secondary market and the reported dollar amounts of latest rounds of venture financing.
At the time, there was chatter whether Twitter could or should be acquired. Early on, Google (GOOG) was always pegged as a likely choice -- until it started Google Plus. Then Apple's name would surface, as would every cash-rich company out there.
Then came Twitter's IPO last November at $26, or $14 billion, with the stock getting bid as high as $73, or a ridiculous $40 billion.
It's now around $21 billion, likely on its way much lower.
In the end, I blame this not on Twitter but on Wall Street. Twitter's mistake, I would argue, was going public. At that point it became fodder for the Wall Street overhype machine, which has a history of taking good names and products and somehow making them appear as damaged goods.
Through it all, for those of us who use Twitter, it has remained a great product that is only likely to get better. Trouble is, it's working out its kinks, as a profitless company, in the public eye that reacts to every move and metric, which can be skewed at the whim of the overall market psychology.