Twitter IPO price hike sparks mixed reactions, wor

Twitter IPO price hike sparks mixed reactions, worries of Facebook-style hype
Twitter’s decision to raise the price range for its initial public offering sparked mixed reactions Monday, with one investor warning of an “overvaluation challenge,” even as some analysts argued that the social network is poised for strong growth.

Twitter’s TWTR 0.00% upwardly revised price range of $23 to $25 (from $17 to $20), which would would make it bigger than Google’s IPO, inevitably stirred up worries that it was getting swept up in the hype, similar to what happened to Facebook’s FB -0.02% disastrous public trading debut.

“With Twitter’s IPO, can we use a little common sense and look at the numbers?” Brian Hamilton, chairman of Sageworks, a financial information company, said in a statement. “They are a profound example of another company with a serious overvaluation challenge.”

He said the implied valuation in Twitter’s price range is “significantly higher” than Facebook when the social media giant went public last year. Hamilton also pointed to a key difference that should give investors pause: Facebook was profitable when it went public, while Twitter is still in the red.

“The company is also still losing money, and at least Facebook was profitable when they went public,” he added. http://blogs.marketwatch.com/thetell/2013/11/...tyle-hype/