The latest social media initial public offering was launched with Twitter, and it opened well above its IPO price, but it the company worth it?
Economist, columnist, radio host and international speaker Jerry Robinson, in his "Follow the Money Weekly" podcast, reveals that it might not be.
"Thursday was a buying frenzy by investors as shares of Twitter opened at $46.10, well above its $26 IPO price," he explains.
"Twitter now sells for 46 times its estimated sales for this year," he said. "(Compare that to Google's 7x sales multiple.)"
He notes, "Twitter isn't expected to report any profits until 2015. Given all of the uncertainties surrounding the company's future profitability, it is probably wise to stay away from this stock for now."
Robinson also reports on several other issues, including that the U.S. economy grew at an annualized pace of 2.8 percent in the third quarter.
He also explains the European Central Bank cut interest rates to a record low on Thursday and that they could go lower still to prevent the euro zone's recovery from stalling as inflation tumbles.
The bank held the rate it pays on bank deposits at zero and cut its emergency borrowing rate to 0.75 percent from 1.00 percent.
"Expect the ongoing rally in European stocks to strengthen in the weeks ahead as investors digest the news," Robinson reports.
Podcast is :52:10.
Jerry Robinson is an economist, published author, columnist, radio talk show host, and international conference speaker. Robinson has been quoted as an economic authority by USA Today, FoxNews and many other news agencies. His columns have appeared regularly in numerous print and web publications, including WND. In addition, Robinson is also the editor-in-chief of the popular economic newsletter, "Follow the Money Quarterly."