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Twitter Shares Outstanding Jump of 73% on NYSE

Twitter shares valuation jumped by a massive 73% over the first day of trading on the New York Stock Exchange. The very strong reaction in the market exceeded expert Wall Street predictions by closing a $44.90 which gave the social networking website a valuation of $31bn (£19.3bn). This fell a little short of the opening price of $45.10 but it was well above the IPO price of $26.

There was a lot of press attention on the firm’s NYSE debut so the trading floor was packed with media and traders. The firm’s co-founder, Jack Dorsey, was happy with the trading, calling the price “excellent”. The company’s price leapt to $45.70 within the first three hours of trading as investors took an initial punt on the company’s expected growth. The highest twitter shares price seen on the opening day was $50.09.

To a lot of observers, the trading price and the firm’s expected growth don’t tally as this is a company that have not made any profit in the seven years they have been in operation. Okay, revenue’s been steadily improving and the brand name is particularly strong but more money is being spent on hiring more staff and heavy investment has been made in more data centres.

Getting one of Twitter’s users and a famous face in ex-Star Trek star Sir Patrick Stewart to ring the opening trading bell to mark the occasion was a nice touch as was the firm’s “#Ring!” tweet. There was an initial offering of 70 million shares, with an optional 10.5 million. It marked the biggest stock market launch for a technology company since Facebook’s in 2012.

Now that Twitter’s gone public, the same questions and concerns that surrounded the Facebook’s trade apply to Twitters. Although Facebook has 230 million users and is mentioned in just about every other firm’s marketing when they ask us to “like” something or mention their Facebook page, the social networking site’s most recent quarter results showed a $65 loss.

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