Twitter just went through their IPO and it Twitter’s price that has skyrocketed to $44.90 from $26 as of November 8, 2013. Similarly, Facebook and twitter obtain their profits from mobile advertising, but Twitter is currently sold at 48 times its 2013 projected revenue figure. Why do investors buy the stock? Investors get attracted to the “next big thing” phenomenon where they make their investment decision based on their intuition and emotion. In turn, investors believe twitter will continuously grow and expand its earnings, but Twitter has not achieved this feat yet which has caused its stock price to skyrocket. Therefore, investors are putting added risk to their portfolio as they are gambling on twitter to exponentially increase their earnings. However, CEO Costolo produced billions of dollars  from the IPO. There are even reports that twitter is only set to make profit by 2015, yet people purchase the stock. It is clear that twitter is overvalued at the price it is selling for, but why does our ‘gut feeling’ play a huge part in our financial decisions. Therefore, individual investors and firms need to ensure that each of their financial decision is made in a group to allow a wider group of views preventing emotion in guiding one’s decision.