Twitter (TWTR) Explodes on First Day of Trading

Jacob Harper  |

The hottest tech IPO since Facebook Inc. (FB) got off with a bang on November 6, as Twitter Inc. (TWTR) exploded out of the gate with gains touching 82 percent before settling in at the still impressive 70-75 percent range.

Twitter had taken great pains to carefully manage their IPO, and avoid any stumbles in their highly-scrutinized entrance into the public investment sphere. The company went public at a far lower valuation than Facebook ($14 billion versus $100 billion), and made sure to have fully established the all-important mobile revenue stream tech investors now demand. At the time of their IPO Twitter derived 75 percent of their revenue from mobile, as opposed to Facebook’s zero.

Twitter’s first-day triumph was not entirely unexpected. Analysts tended to be more bullish on Twitter at IPO than they were on Facebook. Equities.com’s IPO expert Francis Gaskins called Twitter a “buy” prior to going public, citing their impressively diverse revenue stream and expected sales growth.

With any stock gap come whispers of a “bubble,” especially with a company that has not once posted a profit. Brian Wieser of Pivot Research has already issued a “sell” on the company’s shares, and hedge fund manager Doug Kass has advised clients to get out of the tech company. But as of midday trading, Twitter had stabilized in the mid $40s range, and seemed to be holding onto its high market valuation.

At midday Twitter was trading at $45.80 a share, representing a 76.15 percent rise over IPO, with over 80 million shares trading hands.



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Companies

Symbol Name Price Change % Volume
FB Facebook Inc. 201.05 1.69 0.85 12,279,525 Trade
TWTR Twitter Inc. 30.19 0.15 0.50 10,877,458 Trade
MZTI MZTI n/a n/a n/a 0

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