The Twitter effect: Will Pinterest benefit from the IPO?

A Twitter tweet announcing the company's planned initial public offering (IPO) is pictured on a mobile telephone back-dropped by various twitter logos on October 4, 2013. A new book out details the sometimes-sordid history of how the social networking company got its start. 

Twitter is gearing up for its initial public offerings. Starting today, the company will kick off its road show, touring the country to generate excitement about its coming stock offering. The excitement over Twitter has the whole tech industry buzzing.

"I think it’s drawn more attention to the fact that social media is more than just Facebook," says Nate Elliot, a social media analyst with Forrester Research.

But will the excitement around Twitter pave the way for other social sites to go public? "Potentially, the Twitter IPO is really great for start-ups," says Brad McCarty, content director at FullContent, a social data company. He says Twitter’s IPO has gotten a lot of buzz going about sites like SnapChat, Glympse, and Pinterest, which just got $225 million in venture financing this week.

"Once we get 2-3 months down the road after the Twitter's IPO, then I think we’re going to start seeing more talk about companies that are perhaps in a good position to do the same."

Only then, says McCarty, will we see whether the Twitter bump can eclipse the Facebook slump for investors.

About the author

Stacey Vanek Smith is a senior reporter for Marketplace, where she covers banking, consumer finance, housing and advertising.

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