We've covered market crashes numerous times here at optionmillionaires.com.
The market continues to do what we thought it would with the massive global manipulation of asset prices. Each pullback has been a great buying opportunity.
But what about Twitter? Everyone seems hellbent on finding a top to the market. When will the rally stop? When will this Fed-induced bubble pop? Will the Twitter IPO finally open everyone's eyes to the ridiculous bubble-like valuations being put on stocks in this market?
Well, as it turns out, the same thing was being said about a different stock back in the spring of 2012. $FB was going to be the IPO that would sink the markets. $FB IPO'd to much fanfare and then the stock endured a tumultuous run, dropping over 50% below its IPO price. Barron's even said it was a $14 stock.
Today, $FB trades at $49 and the market is trading at much higher levels than it was during the $FB IPO.
It's true that $TWTR has yet to post a profit. However, its growth is unquestioned and its full potential yet untapped. Does it deserve a $14 billion market cap? Will the Twitter IPO remove the rose-colored glasses from the faces of market participants? Myself, I think the market will use the Twitter IPO as an excuse to pull back. But longer term, and if you use $FB as a comparison; the market will trade at higher prices down the road. So the answer is "No, the $TWTR IPO will not crash the market." Go find another excuse.