What's wrong with Twitter IPO?

I think the chances are good that Twitter provides the muscle values, after shares in the secondary market, starting Tuesday.

If you think Facebook ( ticker : FB ) has no evidence IPO in July 2012 was a traumatic event , especially in the sections below to see the IPO -anticipated " Facebook Fiasco " I Today website Yahoo ! Finance slaughtered: Challenges abound for the title IPO (Associated Press), the success of the Twitter business model questioned before IPO (escape / Yahoo Finance) that the price of the initial public offering of Twitter, research indicates that it is not worth the hype (CNBC.com)

But who exactly is traumatized? Investors and financial journalists the cup has a different story I just mentioned - skepticism rather than enthusiasm.

Twitter IPO area grew amid strong demand from investors (Reuters)

Although, if the size of the offering of 70 million shares and your prior $ 17 to $ 20 price range for the share increased from $ 20 to $ 25, if the underwriters exercise the option to buy another 10 million shares, Twitter , finally , an increase of $ 2 billion on top of that range. The final price is expected on Wednesday, and the shares will begin on Thursday.

The truth is that going public with a fantastic time is: I had a great race this year and growth in the exhibition - The IPO shares will debut flashy (as evidenced by the links of the chain belly sandwich more than doubled in the first day of trading). After all, most actions are visible social networks - Twitter peer group - has long since surpassed the market, as the graph below illustrates the operation of Facebook and LinkedIn (LNKD): In this context in mind, investors should ignore the skeptical article and the changes in the stock market? My answer: No.

When Facebook and LinkedIn are profitable businesses, Twitter is not. In this sense, is closer review site Yelp business location, but to each quarter (even if value is not 241% for this year.) Net is a fascinating and was a major influence on the outcome of corporate culture and pop, but as a business model, which is still treating the feet. Many ad buyers in great publicity recently told the Financial Times that the resources devoted to their budgets "experimental”.

I think the chances are good that Twitter provides the muscle action after the stock begins trading on the secondary market, on Tuesday, but is an excellent long term investment seems much more uncertain. Investors who are interested in the purchase of the shares must first ask what they hope to achieve in the period and how much they are willing to lose in the worst case.