Twitter'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.