The New York Stock Exchange bell rang on Nov. 7, marking the start of Twitter’s stock going public. Officially listed under the title “TWTR,” outside buyers now have the option to become stakeholders by purchasing shares of the company.
Twitter released this statement saying, “We are an “emerging growth company” as defined under the federal securities laws and, as such, may elect to comply with certain reduced public company reporting requirements for future filings.”
Initially offered at the price of $26, Twitter’s value jumped to a total of $14.6 billion.
However, with underwriters for TWTR such as Goldman, Sachs, Morgan Stanley, J.P. Morgan, BofA Merrill Lynch, Deutsche Bank Securities, Allen & Company LLC and CODE Advisors, the social media corporation’s valuation may soon change.
Bragging over 200 million monthly active users and over 500 million Tweets a day, Twitter has become a force to be reckoned with in the social media world. This success has not always translated into profit.
Twitter’s intention was to raise $1 billion with their IPO, but they have yet to reach their goal. Ben Popper of The Verge points out the company’s need to reach their goal. Popper quotes, “During the first six months of 2013 the company pulled in $253.6 million in revenue, but its net loss increased by 41 percent to $69.3 million.”
As of today’s closing, Twitter stock’s price was valued at $49.14.That puts the price up 9% from yesterday, its biggest price jump since Nov. 7 on the first day of trading. For minute by minute updated information on the price of Twitter stock, click here. The New York Stock Exchange closed with a volume of 2,852,894,000 today, December 9, 2013.
Twitter’s seemingly successful debut on the stock market is met with scrutiny by some. Cody Willard of Revolution Investing writes, “If those newly issued shares had been sold at the $50 level that they actually hit at one point this morning, Twitter would now have an extra $2 billion to invest in the company’s long-term growth. This Twitter IPO was, exactly as I’d predicted, wildly under priced by its management and bankers, and that is a travesty for shareholders in the long run” Read the rest of Willard’s opinion here.
Last Thursday marked the first day Twitter allowed, “…marketers to show individually-tailored ads on Twitter, based on websites the user has previously visited. The cookie-based targeted ads, as they are known, are expected to fetch higher ad prices,” says Gerry Shih, writer for Reuter’s. Click here to read the rest of Shih’s article.
Twitter operates as both a personal and professional outlet. Some use it to make pithy comments at celebrities and link to other sites they find interesting, while professionals from almost every field use it for live updates on their company, negotiation or making public announcements.
With the additions of targeted advertising, both professional and personal Twitter users will find their feed a little different than before the IPO. Overall, the reactions to Twitter’s IPO have been mixed, but one thing is for sure; Twitter has the spotlight.