“It is my view that Twitter’s shares will likely double in the first month of trading — or maybe sooner,” Mr. Kass, president of Seabreeze Partners Management Inc., said in an email.
No profits? No problem.
“Given the lack of competition in its space, Twitter’s current monopolistic market position suggests a likely quick acceptance as an “anointed stock,” replicating the action of Internet service provider America Online (AOL) in the early 1990s and Internet goods seller Amazon (AMZN) in the mid to late 1990s. As such, Twitter’s share price may not be required, as most stocks are, to achieve visibility of early profits. Indeed, pegging the company’s share price (similar to AOL and Amazon back in the day) to the traditional metrics of profits and cash flows will not likely be a headwind to appreciation over the next few years, as its dominant market share and top-line growth will be conspicuous.”Mr. Kass, a market commentator, who holds a prominent place in the Twitterverse for his investing ideas and broad-market calls, said he was quitting Twitter back in July. At the time, he cited the constant criticism and skepticism he faced on a daily basis from his more than 60,000 followers, claiming there were “too many haters” on the social-media site.