Twitter (NYSE:TWTR) is stroking the market very well. Buzz tells investors it will be conservative. not Facebook (Nasdaq:FB) style. Valuations are oh so low. We don’t want the price to drop.
And investors click more vigorously and increased demand. Underwriters who work for Twitter and not the investing public are there to maximize return for Twitter and existing shareholders. More cash is being raised. Original stakes are now more valuable.
It was all so predictable. If it prices late Wednesday to trade Thursday they played it as long as they could and stroked the price up and up.
Remember share values are the present value of future earnings. A Buck is just a Buck. It has ultimately the same purchasing power as the next one.
George Gutowski writes from a Caveat Emptor Perspective.