Wednesday evening, Twitter Inc. issued a press release about its Thursday IPO via—what else?—the company Twitter account. The company would be putting 70,000,000 common shares on the open market, priced at $26 apiece, for a market value of $18.1 billion, trading on the New York Stock Exchange under the symbol “TWTR.”
We just priced our IPO. pic.twitter.com/NWXaO4Myq0— Twitter (@twitter) November 6, 2013
Hardcore users were quick to mock an apparent lack of platform proficiency.
@twitter Great job with the low-resolution image of your press release. Really expert tweeting, there.— dustin curtis (@dcurtis) November 6, 2013
@twitter great image looks good on mobile— Steve Kovach (@stevekovach) November 6, 2013
Naysayers or no, the mood was cheery as popular Twitter user Patrick Stewart rang the opening bell Thursday morning with 9-year-old Vivienne Harr, who kept a lemonade stand running an entire year to protest slavery, as well as a representative of the Boston Police department. These were the sorts of users who helped to build Twitter, the NYSE said.
An hour and a half later, trade began in earnest, with bankers at bookrunner Goldman Sachs relieved to see that shares were fetching $45.10 apiece, or 73 percent above the initial public offering price. It quickly edged up past $50 but leveled out came back down toward $45 and has been dancing around that figure for most of the day.
Phew!— Anthony Noto (@anthonynoto) November 7, 2013
By noon, the New York Times’ DealBook reported, analyst Brian Wieser of Pivotal Research had seen enough to downgrade TWTR to a “sell” rating. “He said that to justify the $45 price today, Twitter would have to generate more than $6 billion in annual revenue by 2018.” This year’s revenue is expected to be a tenth of that.
Wieser recommended picking up stock in Facebook instead, as the two companies are still farther from being direct competitors than anyone assumes. Facebook had a comparatively disastrous IPO, and its shares had been in the low-$20 doldrums for much of the summer, but of late they’ve been trending closer to where Twitter plateaued today. Twitter's stock ultimately closed at $45.41 but today but has since dipped further in after-hours trading.
While these stocks duke it out in the mid–two figures, of course, Google continues to ride above $1,000 a share, and LinkedIn is trading at around $215, even though both prices fell today. If either Twitter or Facebook wants to be king of the tech mountain in the market’s eyes, they have a long climb ahead.
Photo by Jason Reed
Homeless man plays best cover of Styx's 'Come Sail Away' you've ever heard
Are we sure this isn't really Dennis DeYoung?31k
Husky scarfs down pot-laced Rice Krispie treats, trips balls
It's both a funny and pitiful sight.5.8k
Kids reacting to the gay marriage decision is everything
We could all learn something from this video.5.3k
German magazine files criminal complaint after revealing NSA targeted reporters
Der Spiegel's government source was allegedly outed by a U.S. embassy official.
The 3 biggest questions heading into the ESL ESEA final
The first edition of the ESL ESEA Pro League is coming to a head this weekend with $250,000 on the line.28