Twitter Inc (TWTR)

[NavyMSU]

Very possible: the price curve you're describing also could be the result of profit taking and then inexperienced investors burning out and taking a loss.

Many companies operate at a loss while growing, it's called capital investments.

Some don't have enough backing to afford to make the investments necessary to keep up with demand and they drown.

Others are arrogant and over-spend assuming demand will rise to meet excess capability (inventory).

I never thought twitter to be arrogant.. It's clear their backers want to cash in after their years of funding, and there remains only one question: can they monetize their userbase?

Facebook had a similar problem, clearly with a much larger and more fickle userbase and was barely profitable and they IPOd at 80-100 P/E and now they've finally have a return.

Twitter could probably wait one more year to bring expenses more in line with earnings, but either you believe in management's ability to monetize and are willing to hold and ride it, or you don't.

I do t suspect such a parabolic rise that it would fall below the opening PPS; I think Facebook freaked a lot of people out and they're more cautious (both buyers and investment bankers running the IPO). I think if we see a drop is minimal. Low 20s at worst.