Big assumptions for Twitter buyers: Analyst

Buying Twitter like a pro

To be a buyer of Twitter stock on the day of its initial public offering, investors have to expect strong results over the long term, SunTrust analyst Bob Peck said Thursday.

"To get an annualized return of about 20 percent, which is what investors look for, that implies stock doubling over three years," he said.

Estimated Twitter revenue of $2 billion for 2015 would have to grow 50 percent to reach $3 billion, then another 33 percent to hit $4 billion, Peck noted. A revenue multiple of 15 equals a market capitalization of $60 billion, divided by the number of shares, which would mean a share price of $90, he said.