Twitter starts from its bottom base

Twitter (TWTR) swings back up after having paused some weeks to rebound from its IPO splash. TWTR’s first day trading range exceeded the IPO price of $26 impressively.

Growth is currently there, but the stock is also expensive. A quarterly revenue growth (yoy) of 104.8% compares to revenues of 534M (ttm) and a market cap of 27B, leading to a price to sales ratio of 46.

The company chose its IPO date wisely and synchronized it with a resurged optimism for Facebook. Good for Twitter but not so good for the investor, especially the one who came late to the party and had to buy the stock after it began to trade.