Make us your home page
Instagram

Twitter surges in opening day of trading

NEW YORK — Twitter had a solid public stock debut Thursday in the most highly anticipated initial public offering since Facebook's last year.

The stock closed at $44.90 on its first day of trading, giving Twitter a value of more than $31 billion based on its outstanding stock, options and restricted stock that will be available after the IPO. That's 73 percent above its $26 IPO price.

The high price comes despite the fact that the microblogging website has never turned a profit in seven years of existence. Revenue has been growing, but the company is also investing heavily in more data centers and hiring more employees. At the opening bell, the company that reinvented global communication in 140-character bursts was valued at $31 billion — more than Macy's and comparable to the parent company of KFC and Pizza Hut or tractor and tool maker Deere & Co.

Twitter worked hard to temper expectations ahead of the IPO, but all that was swiftly forgotten with the stock's opening surge. The company "now just has to deliver on all this," said Roger Entner of Recon Analytics.

The IPO was carefully orchestrated to avoid the glitches and eventual letdown that surrounded Facebook's first appearance on the Nasdaq 18 months ago. Trading on the New York Stock Exchange under the symbol "TWTR," shares opened at $45.10, 73 percent above their initial offering price. In the first few hours, the stock jumped as high as $50.09.

The narrow price range indicated that people felt it was "pretty fairly priced," said JJ Kinahan, chief strategist at TD Ameritrade. The immediate price spike "clearly shows that demand exceeds the supply of shares," said Wedbush analyst Michael Pachter.

As a newly public company, one of Twitter's biggest challenges will be to generate more revenue outside the United States. More than three-quarters of its 232 million users are outside the country, but only 26 percent of its revenue comes from abroad. The company has said that it plans to hire more sales representatives in countries such as Australia, Brazil and Ireland.

Twitter surges in opening day of trading 11/07/13 [Last modified: Thursday, November 7, 2013 10:23pm]
Photo reprints | Article reprints

Copyright: For copyright information, please check with the distributor of this item, Associated Press.
    

Join the discussion: Click to view comments, add yours

Loading...
  1. SeaWorld shares drop Monday to 2017 low after disclosure of federal subpoena

    Tourism

    The Orlando parent company of SeaWorld and Busch Gardens theme parks saw its stock drop 3.5 percent Monday to $15.10, its lowest price of this year.

    Killer whales perform at Shamu Stadium at SeaWorld in Orlando in 2011, before public pressure was placed on the theme park company to curtail its orca shows.SeaWorld has since announced an end to the traditional killer whale entertainment  at its theme parks. [AP Photo/Phelan M. Ebenhack]
  2. Rick Scott appoints longtime ally Jimmy Patronis as Florida CFO

    State Roundup
    Rick Scott appoints Jimmy Patronis (background) as CFO. [STEVE BOUSQUET | Tampa Bay Times]
  3. Local gas prices plummet as Fourth of July holiday travel approaches

    Tourism

    TAMPA — Local gas prices are enjoying an unseasonal dip around the $2 mark just in time for the hectic Fourth of July holiday travel weekend.

    The price of regular unleaded gasoline has dropped to $1.99 at a Rally station on Pasadena Ave. South and Gulfport Boulevard South, South Pasadena.
[SCOTT KEELER   |   Times]

  4. Air bag recalls, lawsuits lead Takata to file for bankruptcy

    Autos

    Shattered by recall costs and lawsuits, Japanese air bag maker Takata Corp. filed Monday for bankruptcy protection in Tokyo and the U.S., saying it was the only way it could keep on supplying replacements for faulty air bag inflators linked to the deaths of at least 16 people.

    Japanese air bag maker Takata Corp. CEO Shigehisa Takada bows during a press conference in Tokyo on Monday. Takata has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of defective air bag inflators.
[(AP Photo/Shizuo Kambayashi]
  5. Airbag maker Takata bankruptcy filing expected in Japan, U.S.

    Corporate

    DETROIT — Japanese airbag maker Takata Corp. has filed for bankruptcy protection in Tokyo and the U.S., overwhelmed by lawsuits and recall costs related to its production of faulty air bag inflators.