Twitter Soars on Day 1
LinkedIn did well on it's first day on the stock market. But after the rocky start for Facebook following their high expectations, there was concern Twitter would suffer the same fate. Instead Twitter's price soared to 93% above the initial price of $26 when it reached $50.09 per share at one point in the day. By the end of the trading period, it had fallen a little to $44.90. At this level, Twitter's value is an incredible $24.4 billion.
CNN Money reported:
"A 'clean' debut: Twitter's early pop is similar to that of LinkedIn (LNKD), which more than doubled in its first day on the stock market. But it was Facebook's messy debut on the Nasdaq last year that had some individual investors worried ahead of Twitter's IPO. Luckily for Twitter, its offering went smoothly.
"We tried to have a very clean process [for the IPO] ... the team that worked on it inside the company was very methodical," Twitter CEO Dick Costolo said on CNBC earlier in the morning.
Twitter was the most actively traded stock in the U.S. on Thursday. More than 117.3 million shares had exchanged hands by the end of the day."
All this for a company that has never shown a profit and is not nearly as large as Facebook. However, it is such a part of the American dialogue that many assume the social network is as large as Facebook.
So, did you buy invest in Twitter on Thursday? What kind of changes do you suspect Wall Street will pressure Twitter to make?