Twitter resets its IPO price earlier today to the $23-$25 range. According to MicroVentures CEO Tim Sullivan, the demand for Twitter shares in the private market is very high. Using microeconomics concepts, the number of customers in the market increases, the demand will shift to the right which means the demand increases.As a result, the equilibrium price will increase. MicroVentures has been tracking the price of Twitter shares in the private market for a long time and they find that people bid the price from $15 per share last summer to $35 per share recently. Although the price in the private market is not used by banks to set the real share price, but it shows how people are crazy about Twitter shares and thus investors will hold an optimistic attitude about Twitter.

Twitter may meet the same situation as Facebook did last year since demand is so high and the price as well. It is true that they have different IPOs and Twitter’s seems much better than Facebook’s. Investors are expecting Twitter, but nobody can predict the future. See what happened to Facebook! Anyway, we still want to see the day that Twitter goes public.