Twitter's IPO Price Increase Worries Some on Wall Street

Kaja Whitehouse of the New York Post published a critique of Twitter TWTR given the company's recent decision to raise its initial public offering price. Company shares are expected to debut on Thursday, November 7, with an expected price range between $23 and $25 a share. The microblogging social media site was initially expected to debut in the $17 to $20 range. Whitehouse further discussed the possibility that that the final offering price, which will be finalized in the hours prior to the IPO, could be worth $25 a share. Wall Street brokers are also worried given the tremendous demand coming from clients who just want in, regardless of price. Twitter is the hottest name in tech and is competing with Facebook for the title of the most anticipated IPO in recent history. Doug Kass, the famed hedge fund director at Seabreeze Partners Management, is calling for Twitter to rise to $45 a share within the first month of trading. He has a large following on Twitter and recently called the platform “useless."

With memories of Facebook FB and its failed IPO still fresh in investors minds, the recent hike in Twitter's initial price is causing many to worry. Rick Summers, a senior stock analyst at Morningstar commented that his firm would not recommend investors invest at a price above $26.

Not all analysts share a negative sentiment. On October 7, Bob Peck at SunTrust Robinson Humphrey initiated the company with a buy rating and a $50 price target.

The analyst likes the company because of its healthy balance sheet of $2 billion in cash and no debt. Additionally, with the company growing its revenues by 100 percent in 2014 the company can pursue long term growth opportunities.

Kass told CNBC, "I went off because I felt that the digital feed of Twitter empowers a number of mean, weak, angry, misinformed people who hide under this shroud of anonymity."