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Print 13 comment(s) - last by just4U.. on Nov 10 at 2:18 AM

Twitter started trading on NYSE under the ticker TWTR this morning

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. 

Source: Reuters



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Loses $69 million - Gets a $25 billion marketcap
By aurareturn on 11/7/2013 3:10:44 PM , Rating: 3
No tech bubble here folks. /sarcasm

I never understand why people think these companies can last. Technology companies come and go. Ask yourself, do you still think Twitter can be relevant 10 years from now?




RE: Loses $69 million - Gets a $25 billion marketcap
By iVTec on 11/7/2013 3:16:23 PM , Rating: 4
That's the point, they DON'T have to last. Everyone knows that soon a new "Twitter" will emerge, a better idea or/with a better final product for the user. It doesn't really matter. Some will make money off Twitter now, some won't.

But i don't know if you can call this thing a "tech bubble". It's different from 13 years ago in so many aspects.


By homebredcorgi on 11/7/2013 7:29:31 PM , Rating: 5
What is so different from 13 years ago?

I see companies getting massive valuations despite never making any money, just like before. Pinterest and Snapchat are both valued over $3 billion each! Twitter is now a $20 billion company. None of them have made any money yet and aren't really expected to for at least another year. Based on these valuations, they will need to make money for decades but big tech companies can vanish very quickly (see MySpace, Pets.com, etc)...heck, remember Groupon? They were all the rage a year or two ago....

I see a resurgence in the "startup culture" where venture capital throws money at you just to see if it sticks. In the first dot-com bubble it was anything having to do with "the internet" now it appears to be anything having to do with "social networks".

So what is so fundamentally different this time that it isn't a bubble?


By chromal on 11/7/2013 4:09:41 PM , Rating: 4
Twitter has never been profitable, and I still don't see how it can be. Seems like junk stock, reminds me of Zygna and Facebook.


By TheDoc9 on 11/7/2013 4:39:07 PM , Rating: 3
It's the casino of the stock market. Notice that normal people weren't able to buy at the initial offering, it wasn't available until around $45. So the 'IPO' made a few insiders rich, they've already dumped their stock or soon will.

The next few days may be very interesting. All hype, All gambling.


By Motoman on 11/7/2013 4:52:14 PM , Rating: 2
This is just it. There's no value in Twitter at all. This is nothing but a bunch of idiots with money playing bingo on the stock market.

Wake me up when such companies can actually generate considerable profit without losing their customer base that expects everything to be free.


By superflex on 11/8/2013 12:20:14 PM , Rating: 2
http://www.zerohedge.com/news/2013-11-08/unbelieva...
Tiffany fails to realize that for Joe Sixpack who want some twatter action, the best they could have done was a 10% profit, assuming they bought at $45 and sold at $50. 10% is nothing to sneeze at, but timing is everything and you're not going to beat the HFT algos of the big boy banks.
Today the joke of a stock is selling below it's opening price,
Comedy gold, Jerry.
PT Barnum was right.


By Jeffk464 on 11/7/2013 6:26:43 PM , Rating: 2
Yeah but think about the major investing firms, they can get in the first second the stock is available and then sell it 10 minutes later if they want to.


By Makaveli on 11/7/2013 6:37:24 PM , Rating: 2
As a old man told me many years ago.

The stock market is for suckers!


By TemjinGold on 11/8/2013 8:52:48 AM , Rating: 2
You obviously have no idea how IPOs work then. If the major firms buy before the public can, they are locked into holding for 180 days. If there wasn't such a rule, every IPO out there would be a disaster. The people laughing all the way to the bank are the companies that underwrite the deal.


wat?
By p05esto on 11/7/2013 10:00:07 PM , Rating: 2
I just don't get Twitter at all. It seems so self-gratifying and another look at me me me me service. What's the point? To spew crap to so called friends where none of them actually reads any of it? How self-absorbed are we? I would be totally embarrassed to ask people to follow my crap and then post to out. What would I say? Who would care? I guess no different than post a comment here, but it's different I think. And how in the world do they make money? No one would pay as ads are lame (who EVER clicks on ads?). I give up on humanity.




RE: wat?
By Jeffk464 on 11/8/2013 11:59:13 AM , Rating: 2
That describes facebook pretty well, twitter has been useful for braking news stories though. Mostly it is just people posting about their toddlers first solid bowel movement though.


Well it took a bit ...
By just4U on 11/10/2013 2:18:21 AM , Rating: 2
The elites pulled it off.. 28 billion huh? lol.. an exercise into "lets see if we can get the masses to go for this..."I remember when Twitter first started making it's rounds in the media. Famous people were talking about it .. politicians.. and the like as if it was the next big thing and EVERYONE was using it. Yeah.. ok.. at the time very few were using it really and even less had heard of it... but hey got to give them credit they pulled it off and look where it is today.

While I don't use Twitter.. on behalf of the North Americans, I feel bad for our herd like mentality and ability to be suckered in by the few. Ticks me off really.. as individuals who crawl the net I am sure many of you know what I mean. Some famous person who is never online suddenly starts praising something like it's the biggest thing ever and it's not even on our radar? hmmm yeah ok... anyway grats to them.




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