BREAKING: Twitter (TWTR) shares closed at $44.90 on first day of trading on NYSE!

pierreapienaar
By pierreapienaar on Fri, Nov 8, 2013 - 4:05am

Twitter has just kicked off its IPO on the New York Stock Exchange and the share price close at $44.90 on first day of trading on NYSE.

Twitter shares soared Thursday as investors scrambled to get a piece of what they hope will be the next blockbuster social-media company after Facebook.

 

Twitter CEO Dick Costolo told CNBC that the company is focused on making the service easier to use and highlighted its potential for big profit margins in the future.

 

"There is nothing structural about our business that prevents us from achieving the kinds of margins that are in our peer group," Costolo said during an interview at the NYSE.

 

The Twitter IPO was heavily oversubscribed, which forced some investors to wait until the stock started trading today to buy it. That helped fuel big gains.

 

Twitter 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 — essentially, the way it makes money — is still in its infancy.

 

Twitter’s management and its bankers are happy with the IPO’s outcome, according to a person with direct knowledge of their thinking. While they’re not surprised the stock gained so much, because of the overhang in demand, they expect it to drop toward $30 a share during the next three weeks

 

Questions remain over Twitter's financial prospects and how the stock will perform once subject to quarterly earnings reports.

"It seems to me like a speculative valuation for a company that is still unprofitable," says Richard Sloan, accounting professor at University of California-Berkeley.

 

Trade smart, not often

 

Pierre A Pienaar

 

Some Valuable Sources every trader should use:

 

1.    THE METHODOLOGY WILL BE REVEALED!

Saturday, November 16th, 2013 10am - 4pm (Eastern) Reserve your space in this event fast... click here.

 

2.    'Psychology of Profits' - 6 Things You Should Quit to be More Successful...

Each week we give you a healthy dose of discipline tips to apply to your trading. Be sure to check the blog or our YouTube channel to find all our 4-Minute Drills for Traders.

This week, Norman shares his final rule of the 3 rules he never breaks when he trades...

Watch Here NOW: Check out '4 Minute Drill' #125

1 Comment

miltonjayro's picture
miltonjayro
Status: Member (Offline)
Joined: Nov 9 2013
Posts: 1
BREAKING: Twitter (TWTR) shares closed at $44.90 on first day of

FB (Facebook) hit a high of $45 the day of the IPO release and dropped down to sub $20 range 

LNKD (Linkedin) hit a high of $120 few weeks after IPO release and hit low sub $60 level 

GRPN (Groupon) IPO release saw a high of $25 saw sub $4 

 

The bottom line these stocks dropped down more than 50%, a re-tracement is likely for the TWTR (Twitter) IPO wait until the stock drops sub $20 to actually buy the stock 

 

 

 

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Login or Register to post comments