Twitter stock spreads Its wings and soars to 92% above IPO price on first day

Twitter logoTwitter's stock is soaring like a bird on its first day of trading on the New York Stock Exchange (NYSE).

According to a new report from Reuters, Twitter shares went as high as 92 percent above the $26 initial public offering (IPO) price today. That IPO price was set on Wednesday.

Twitter's stock opened at $45.10 a share today (well above the original $26 IPO price), and ended up achieving a high of $50. The shares were up nearly 74 percent to $45.15 at midday.

Reuters added that investors asked for 30 times the number of shares on offer. In addition, the opening price valued the shares at about 22 times forecast 2014 sales, which is almost double that of Facebook Inc and LinkedIn Corp.

Twitter's market value was over $28 billion including restricted share units and other securities.

Twitter decided to price its 70 million shares above the targeted range of $23 to $25. The IPO values Twitter at $14.1 billion, and it could achieve $14.4 billion if underwriters exercise an overallotment option. If that does happen, Twitter could raise $2.1 billion and become the second largest Internet IPO in the U.S. behind Facebook's $16 billion IPO last year (and even ahead of Google Inc's 2004 IPO).

In H1 2013, Twitter reported that it lost $69 million USD while pulling in a revenue of $253.6 million USD.

Twitter has claimed the "TWTR" ticker symbol.

Some feared that Twitter's IPO could be as troublesome as rival social media network Facebook's was last year. But Twitter's is turning out much better on the first day, as it's trading on NYSE (Facebook traded on NASDAQ, and an issue with Nasdaq’s computer programming delayed trading for about 30 minutes and caused problems and confusion among traders) and Twitter’s stock hasn’t needed massive support from its bankers to trade above its IPO price (Morgan Stanley had to quickly buy Facebook stock to keep it above $38 in May 2012).

But Twitter is also smaller with less users than Facebook (Twitter currently has 230 million active users while Facebook had 900 million at the time of its IPO). It's keeping things low-scale compared to Facebook, which started trading at $38 a share and the IPO valued the company at more than $100 billion.

Source: DailyTech

Tags: Twitter

Add comment

Your name:
Sign in with:
Your comment:

Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party

Last news

Pokemon GO had the potential to net $1 billion a year
The report said that Hon Hai has invested about US$600 million in India
Market research firm IDC reports that in the third quarter of this year
Customers will only have to shell out 50% of the cost of their Galaxy S7 device
New flagship will launch in 2017
Patent hints at name of the upcoming Surface AIO
IBM, Globalfoundries and Samsung have chosen to use extreme ultraviolet (EUV) light to pattern transistors
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
HP Slate 7 is a 7-inch Android 4 Tablet PC with good sound
A cost-effective, 7-inch tablet PC from a renowned manufacturer
October 25, 2013 / 4

News Archive



Do you use microSD card with your phone?
or leave your own version in comments