Top investor not so bullish on Twitter

  @CNNMoneyInvest October 18, 2013: 4:31 PM ET
twitter stock ipo

Twitter will soon go public. But will the stock actually do well? That's up for debate.


Twitter is gearing up to make its debut on the stock market, but prominent angel investor David Cohen isn't that bullish on the social media company.

Cohen, founder and CEO of leading startup accelerator TechStars, said he's a fan of Twitter. He'll probably even own a stake of it through one of the many funds he is invested in. But he suggested that Twitter's stock price may not rise too dramatically over the long-term.

The comments came during a conversation at the Stocktoberfest investing conference in San Diego Friday hosted by StockTwits. The social investing site's chairman Howard Lindzon asked Cohen whether he would take a long or short position on a certain companies.

Cohen said he would go long on Google (GOOG, Fortune 500), Nike (NKE, Fortune 500), Apple (AAPL, Fortune 500) and Facebook (FB, Fortune 500), but that he would hold, or go "not as long" on Twitter.

Related: Who'll be getting rich off Twitter

"Twitter needs to become more of a platform on the web," said Cohen in a follow-up conversation with CNNMoney. "If Twitter went away today, people would just turn to Facebook. If Facebook went away, people would start screaming -- it's so universal."

Cohen said Twitter has the potential to become a more essential web platform, but it's not there yet.

How Twitter has changed the world

Though Twitter is not yet profitable, the company's user base and mobile business is growing. In fact, Twitter's monthly active users grew nearly 40% during the third quarter, and mobile ads brought in 70% of the company's total advertising revenue. But the key going forward will be whether Twitter can secure a steady revenue source without pushing users away.

Still, Cohen said he believes it's the right time for Twitter to go public. Twitter is slated to sell $1 billion in stock through an initial public offering next month. To top of page

Join the Conversation
Sponsored by
Index Last Change % Change
Dow 16,408.54 -16.31 -0.10%
Nasdaq 4,095.52 9.29 0.23%
S&P 500 1,864.85 2.54 0.14%
Treasuries 2.72 0.08 3.19%
Data as of 9:28pm ET
Company Price Change % Change
Bank of America Corp... 16.15 0.02 0.12%
Facebook Inc 58.94 -0.78 -1.31%
General Electric Co 26.56 0.44 1.68%
Cisco Systems Inc 23.19 0.16 0.69%
Micron Technology In... 23.91 1.43 6.36%
Data as of 4:01pm ET
Overnight Avg Rate Latest Change Last Week
30 yr fixed4.32%4.26%
15 yr fixed3.36%3.27%
5/1 ARM3.37%3.27%
30 yr refi4.31%4.24%
15 yr refi3.34%3.25%
View rates in your area
Find personalized rates:
Rate data provided
Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer LIBOR Warning: Neither BBA Enterprises Limited, nor the BBA LIBOR Contributor Banks, nor Reuters, can be held liable for any irregularity or inaccuracy of BBA LIBOR. Disclaimer. Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.