Cramer: Twitter IPO will be a 'circus'

Wall Street had been all a twitter after, well, Twitter disclosed it had filed for an initial public offering and CNBC sources said Goldman Sachs will be the lead underwriter. To Jim Cramer, though, the IPO will be interesting, to say the least.

"I have to tell you, the Twitter deal will be a circus," Cramer said. "Everyone will want some, even if it goes out at $20 billion, which comes to 17 times sales."

After social networking site Facebook suffered a botched IPO last spring, in which some thought it was priced too high and otherwise inaccessible to the retail investor, Cramer said he hopes things are different with Twitter's IPO.

"All I ask is that the book runners, those who control the underwriting, be fair and try not to hurt the regular investor," Cramer said. "It's vital that this deal not become the son of Facebook, even if that means making sure the IPO gets done at the New York Stock Exchange if the NASDAQ can't be absolutely sure that another Facebook fiasco won't occur."

Today, Facebook is worth around $100 billion. Being as Twitter has one-fifth the users Facebook does, Cramer thinks the micro-blogging site is worth roughly $20 billion.

No matter what happens, though, Cramer recommended investors avoid buying a social media IPO in the after-market. After all, he said you can almost always get a better price later on.

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