. . . Darren R. Hayes, a computer science professor at Pace University in New York and a former investment banker, agreed in a phone interview that Twitter appears to have chosen to go public at the right time.
“The general market conditions are not unfavorable,” he said. “It may be a good time for Twitter to go public. There doesn’t seem to be too much negative information about the macroeconomic climate.”
Hayes suggests a repeat of the Facebook IPO disaster is unlikely. He blames the underwriter rather than the company itself for failing to attract enough support from institutional investors. He also notes that concerns about Facebook’s growth had been raised when GM publicly distanced itself from Facebook advertising (only to return a year later).
Hayes says that a concern among investors in social media companies is that company business models may be vulnerable to being copied. He doesn’t see that as an issue for Twitter in the near term, but he says it’s something to consider for any social media company.
Read the article by InformationWeek.