Twitter has successfully debuted at the stock market Thursday, marking a 73% upswing from its offer price. As the social network’s IPO zoomed in value, two of its founders got lifted into the billionaires’ row followed by a surge of millionaires riding with the tide.
Dazzling performance
Wall Street was astounded by Twitter’s dazzling performance in the market as it exceeded expectations even by the most optimistic stock market watchers. As the closing bell sounded, the social network that invented a 140-character communication tool was valued at $31 billion, almost as much as Yahoo’s and a little under Kraft Foods, a century old food product.
Twitter’s remarkable showing has given brighter hopes for Internet companies particularly those that are concentrated on mobile subscribers. With this development, more entrepreneurs are expected to take a closer look at IPOs that incidentally took a downturn after Facebook experienced an unsavory glitch in its first Nasdaq experience.
New crop of billionaires and millionaires
San Francisco and the entire Silicon Valley recently produced another crop of millionaires and billionaires after Twitter’s astounding jump in the stock market arena. Most of this new breed of moneyed groups will certainly put some of their wealth in startups. Twitter worked hard up its way to the ladder of commercial success, as it never monetized its network for the past seven years since it started operation. Initially, the company was cautious in launching its IPO when it placed its first offer at a lower value than that of Facebook’s initial offer earlier this year. Twitter apparently did not want to experience the same downfall that Facebook went through when the latter’s value decreased after it went public. All the apprehensions however are now erased after the market closed and Twitter’s IPO surpassed its first offer.
Individual worth
After the trading high and stock holdings were laid late Wednesday, financial experts now peg Twitter’s hotshots according to their individual worth. Co-founder Evan Williams now has an estimated $2.9 billion worth of stocks. Jack Dorsey, another co-founder is said to be worth $1.2 billion while CEO Dick Costolo has $384 million worth of stocks. On Thursday’s stock market finish, Twitter shares concluded at 74% for a value of $44.90, almost doubling Wednesday’s $26 per share price.
Close watch
Despite Twitter’s impressive showing in its first public performance, stock market experts are keeping close watch on further developments. Twitter, they say, may not be really worth its premium price. It is said that it will take months or a year before Twitter can really claim its earnings based on its ability to sustain its initial value. Kevin Landis, a portfolio manager at Firsthand Funds who is also a Twitter shareholder, said that the stock surge that happened in Twitter’s IPO was not really that important. What actually matters, he said, is where the stock is proceeding to in the coming months.
Trading scenario
The trading scenario that took place at the New York Stock Exchange where Twitter traded under the symbol TWTR, was one of the most exciting presentations in the stock market. The shares opened at $43.10, placing the initial offer at 73% above its original value. After a few hours, the stock leaped to as high as $50.09 while it closed at $44.90. Stock market analyst Michael Pachter said that the price increase showed there was more demand than supply of shares.
Photo Credit: Twitter Logo
Facebook
Twitter
Pinterest
Google+
LinkedIn
Email