Twitter's performance following its initial public offering (IPO) could be watched closely by Alibaba as the Chinese tech giant deliberates whether to list its shares in the U.S. or Hong Kong, analysts say.
Social networking website Twitter on Wednesday priced its IPO at $27 per share, above the original expected range of $23 to $25. It starts trading on the New York Stock Exchange later on Thursday.
(Read more: Twitter IPO prices at $26 per share above estimates)
For Alibaba, a Chinese e-commerce platform set up in 1999 by billionaire Jack Ma, Twitter's listing is expected to act as a barometer of investor appetite for technology shares at a time when talk of a bubble in the tech sector has resurfaced.
"We don't know yet where Alibaba will list and exactly when, but let's assume that the IPO will go to the U.S. and that it will happen early next year – in this context the performance of Twitter will basically set the tone of the short-term IPO market," said Stephen Sheung, vice president and investment strategist at SHK Private in Hong Kong.
(Read more:Twitter to debut amid signs of wear in market)