Yesterday was quite an exciting day for both Wall Street and the tech industry! West Coast based micro-bloggers at Twitter went public at 9:30 am EST at an opening price of $26. It didn’t last at that price for long, going over 50 at one point in the day. We’ve been following the Twitter IPO journey since it was a mere idea, but now it’s finally here! We’ll look at how much the Twitter IPO actually reached, what it approximately raised and more! Unfortunately it’s not all good news, as we look at certain events that took place at the headquarters in San Francisco, CA in addition to the beating other social media stocks took today.
(Photo credit to: Technorati.com)
The Twitter IPO, From Idea to Reality
What started as a mere prediction almost a year ago has had quite the journey. In recent times Twitter grabbed the headlines at the beginning of Fall as they announced their plans to go public. Questions about their overall value and predictions on opening stock price began to land on every big business and investment site. The Twitter stock price alone has even had its own adventure, starting at the low range of $17-$20. At 9:30 am on Thursday, November 7, 2013, Twitter IPO opened at $26! That’s almost an addition $10 on each share.
While the Twitter IPO stock peaked over $50 it settled at $45 by the closing bell. Analysts already began crunching the numbers looking at how much the limited character social media platform raised today. Approximations stated that $1.82 billion was generated at the $26 opening price, with as much as an additional $1.33 billion on top of that as it was bought at the $45 price. All in all Bloomberg BusinessWeek estimated the opening trading pop at around 73%.
Not all Fun and Trading
While Wall Street was busy with Twitter IPO, the San-Francisco based headquarters were met with 3,000 local protesters. What were the protesters doing at Twitter’s HQ? San-Francisco recently gave Twitter a $22 million tax break. Following those events the city suffered a loss of revenue, and blame the break as being the catalyst. Then, as the news emerged that Twitter was going public today, residents became bitter at the lack of community gratitude absent from Twitter.
Additionally while Twitter IPO rocked Wall Street, other social media stocks did not. Both Groupon and LinkedIn were down over 4% and even Facebook was down by almost 4%. With Twitter the only one rising, many investors have a common question racing through their minds.
How long will Twitter’s rise last? Will it only be temporary? What are your thoughts about the protesters in San-Francisco?
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