And one thing is certain, the higher the stock goes, the higher the expectation will be for earnings.
At its current levels, the stock is priced for perfection and must dramatically outperform expectations and its expectation is already at 100 percent growth, Squali said.
He added that for his firm to even change its rating, Twitter's stock would need to show more than 103 percent growth. In addition to earnings pressure, Twitter may also have to prove that it can sustain its high valuation under economic pressures.
"All it takes is to go through a hiccup in macro and people are going to want to hide somewhere with an earnings story. Well, this one doesn't have an earnings story," Squali said.
"We are bound to have a pullback at some point in the next three to four years. And people are going to be running to much less volatile earnings rich stories."
On the flipside, though, Twitter's soaring valuation makes other Internet names look more attractive, analysts said.
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"With regards to Twitter, we are actually short it right now. If Twitter is worth this much, it makes us feel that much better on our Facebook position," said Dan Niles of AlphaOne Capital Partners. "This move, to me, looks a little parabolic, but the good news is we own a lot of other Internet names, like Yahoo and Google."
Squali said that between Facebook and Twitter, his firm likes Facebook a lot more because it's less than half the price on a relative basis and has a much higher rate of user engagement.
He added that Google and Facebook were his top two picks.
"The higher Twitter goes, the cheaper these stocks look," Squali said.
—By CNBC's Cadie Thompson. Follow her on Twitter