Twitter IPO price may hit '$28 or more' but many Americans don't think it's worth it
Following its successful "road show" last week, Twitter is expected to increase the price it expects to get in its initial public offering. It could even reach $28.
The company updated its filing with the US Securities and Exchange Commission yesterday, increasing the price range from $17-to-$20 to $23-to-$25.
At $25 this could push the company's haul to more than $2 billion.
Twitter's original price range was thought to be conservative, valuing shares lower than the market did for private shares of Twitter this summer.
Wedbush Securities managing director of equity research Michael Pachter predicted the San Francisco company would boost the price again because of high demand.
Reuters and Bloomberg quoting sources said Twitter would still be "massively" oversubscribed at the top end of its new range, $25. Some thought it could go to $28.
”They're going to tweak the price range until they get something where demand very slightly exceeds supply," said Pachter .
Facebook increased both the price and size of its offering in the week leading up to its IPO then fell lower than that price for more than a year after it started trading.
Many critics and individual investors already think Twitter stock is. overpriced.
An Associated Press-CNBC poll found that 47 percent of Americans do not believe Twitter is a good investment, with only 36 percent believing it's a good buy.
Blackest mark: Twitter's inability to generate anything resembling profits since being formed in 2006