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There is often a lot of irrational optimism immediately following an IPO. Remember Zynga? Yeah, they are not doing so well now, even though their stock value shot up dramatically initially. Twitter is no Zynga, but a P/E ratio of 25:1 is pretty high. Still, Twitter doesn't really have any serious direct competitors, so it may be a better bet than some of the other recent IPOs. There was a decent write-up in Forbes about Twitter's IPO, if you want to hear about it from an investment perspective.