Twitter Stock Up 73 Percent On Its First Day, IPO Goes Off Without A Hitch
In case you missed the frenzy among usually calm financial writers, today was Twitter IPO day and what a day it was! Actually, everything went pretty smoothly. And that’s exactly what Twitter, the market, and investors wanted.
Twitter set the IPO price at $26, but when the stock began trading on the New York Stock Exchange at around 11am it quickly jumped to $45.10, a 73 percent increase. This puts the value of the company at $25 billion, making the company’s chairman Jack Dorsey a billionaire “on paper,” as The Wall Street Journal put it, and priced the stake of the company’s CEO Dick Costolo at $345 million.
Despite all the chatter today, this isn’t the biggest thing ever to happen to the stock market. The WSJ points out that just last week, The Container Store saw its stock double last week after its IPO.
Perhaps even better than all that is the fact that the IPO went off without any issues. The fear going in was a repeat of Facebook’s botched IPO on the NASDAQ last year. (The NASDAQ has taken a hit as a result of that, and other, problems.)
Now that things have launched, the company has to live up to all the hype. It’s strength is its mobile capability, but the company still has much to prove. But in its most recent quarter ending in September, the company reported even bigger losses — $64.6 million vs. $21.6 million the prior year. It’s not expected to be profitable until 2015, according to analysts Bloomberg spoke with. The company raised $1.82 billion today, which the company is expected to use to expand, particularly overseas.
[h/t NY Times]