re: Twitter IPO

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They have 60% gross margins

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Yeah, it helps to look at gross margins when valuing high growth tech companies, because profit margins can be misleading. When the cost of the "goods" is low, you can get a good idea for what the eventual profits might be.

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Don't tell me that 100% of the cost of Sales, SGA, and R&D is related to growth

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No, probably half of it is though, which would put Twitter's profits in the neighborhood of FB and GOOG's once the growth starts to slow down to their levels. The biggest question is what will Twitter's growth curve look like.

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I don't feel like what im saying, that tech ipo's are historically overvalued, is really out in left field.

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It's not out in left field, it is true, but the key word is "historically". The tech industry (and tech investors) have matured quite a bit over the last decade. The revenues are real, and the growth is real. But being "profitable" as such a young company isn't as big a concern as the "value investors" think it is. These companies don't have to figure out how to become profitable, they just have to decide when to become profitable.

That said, I have to agree that Twitter is probably overvalued by quite a bit at this point. I will have to watch it for another year or so to see if they maintain their revenue growth.