Home > Finance, Social Media, Technology > Twitter Soars 73% in its IPO

Twitter Soars 73% in its IPO

Thursday, November 7th, 2013 Leave a comment Go to comments

Twitter priced its IPO at $26 a share. At that level, Twitter seemed like a good deal. Tough luck though for most retail investors who could not get in at the IPO price.

Against this backdrop, Twitter’s shares opened up today at $45.10 on the New York Stock Exchange, under ticker TWTR. The stock climbed as high as $50.09 before closing at $44.90, up 73%. That values the company at more than $31 billion.

One factor that contributed to Twitter’s big gains today was its shares were heavily oversubscribed, which forced some investors to wait until the stock started trading today to buy it. According to USA Today, Twitter’s share gains were also driven by optimism about the company’s long-term opportunities. The service is already a global media phenomenon, but it has a lot fewer users than Facebook, and the company’s business model is still evolving. That leaves room for investors to imagine great improvements from Twitter going forward.

I’m hoping Twitter pulls back a little for a better entry point, preferably under $33.

 

Source: USA Today

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