|Twitter IPO Closes Up a Whopping 73 Percent|
|Zunaira Zaki||Nov 7, 2013, 4:36 PM|
On its first day trading as a publicly held company, Twitter stock closed at $44.90, up a handsome 73 percent from the IPO price.
That means the company has a market value of $24.5 billion.
Even though the stock ended a bit lower compared to the open price, Twitter's public debut went smoothly compared to Facebook's technologically challenged IPO.
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Twitter stock (NYSE: TWTR) rose 74 per cent on the open to $45.10 and hit $50 at one point - almost double its $26 offer price. Retail investors who bought at $50 took a haircut. The lucky few institutional investors and their favored clients who got in at $26 made a bundle.
Twitter makes its money from advertising and like almost any media company has to strike a balance between revenue and clutter that could potentially turn users away. The company has never made a profit, though revenue is rising swiftly.
Only time will tell whether Twitter remains an indispensable social media service or whether it turns into an unenviable has-been like MySpace and Friendster.
Stock markets in general did not have as good a day as Twitter. All three major indices ended the day down. Good news about the U.S. economy had investors worrying that the Federal Reserve will pull back on stimulus.
In Photos: Twitter's Biggest IPO Winners