News

Twitter shares skyrocket in stock exchange debut

Twitter shares skyrocket in stock exchange debut

TWITTER TRADING: Actor Patrick Stewart (R) and 9-year-old Vivenne Harr (C), who uses proceeds from her lemonade stand to fight slavery, ring the opening bell as Twitter co-founder Evan Williams and and Boston police officer Cheryl Fiandaca look on. Photo: Reuters

By Olivia Oran and Gerry Shih

(Reuters) – Twitter Inc. stock soared 92 percent in their first day of trading on Thursday on the New York Stock Exchange as investors snapped up shares in the microblogging site, pushing its market value to a heady $25 billion.

The shares opened at $45.10 a share, up from the initial public offering price of $26 set on Wednesday, then added to those gains, hitting a high of $50.

Sources said the flotation had drawn strong demand, with investors asking for 30 times the number of shares on offer as they bet on potential growth at the money-losing social media company.

The opening price valued the shares at about 22 times forecast 2014 sales, nearly double that multiple at social media rivals Facebook Inc and LinkedIn Corp.

Twitter executives including Chief Executive Dick Costolo and founder Jack Dorsey thronged to the floor of the New York Stock Exchange to witness the IPO. The Big Board snatched the offering away from Nasdaq after the normally tech-focused Nasdaq stumbled with the larger Facebook flotation last year.

“Facebook was so overhyped people felt like they couldn’t miss out,” said Kenneth Polcari, a senior floor official at O’Neil Securities Inc. “Twitter isn’t like that, though you can feel the excitement.”

British actor Patrick Stewart rang the opening bell at the exchange together with 9-year-old Vivienne Harr, who started a charity to end childhood slavery using the microblogging site.

“I guess I represent the poster boy for Twitter,” Stewart said, adding that he had only been tweeting for about a year and wasn’t buying Twitter stock today.

Twitter’s building staff opened its offices in San Francisco extra early, at 5:30 a.m. on Thursday. By 7:30 a.m., hundreds of employees had flocked to their 9th floor cafeteria to watch Stewart ring the opening bell on TV.

The microblogging network priced its 70 million shares at above the targeted range of $23 to $25, which had been raised once before. The IPO values Twitter at $14.1 billion, with the potential to reach $14.4 billion if underwriters exercise an overallotment option.

If the full overallotment is exercised, as expected, Twitter could raise $2.1 billion, making it the second largest Internet offering in the United States behind Facebook Inc’s $16 billion IPO last year and ahead of Google Inc’s 2004 IPO, according to Thomson Reuters data.

Twitter boasts 230 million global users, including heads of state and celebrities, but it lost $65 million in its most recent quarter and questions remained about long-term prospects.

It also lacks the ubiquity of Facebook or the “stickiness” factor that keeps people checking the No. 1 social network on a daily basis.

A Reuters-Ipsos poll last month showed that 36 percent of people who signed up for a Twitter account say they do not use it.

Recent Headlines

in Music

Glen Matlock denies new Sex Pistols reunion

John Lydon, right, and Glen Matlock of The Sex Pistols perform at the Roxy in West Hollywood, Calif., on Thursday, Oct. 25, 2007.

Sex Pistols star Glen Matlock dashes fans' hopes of another reunion by insisting he hasn't had any contact with John Lydon in five years.

in Weird

Chaos erupts at Comic-Con Zombie Walk

People dressed and made up as zombies take part in a traditional Zombie Walk in Prague, Czech Republic, Saturday, May 24, 2014.

An elderly woman was hit by a car during a Zombie Walk after "zombies" attacked a car attempting to flee the scene.

in Weird

Bare burger burglars caught on security camera in Florida

A group of three men wearing only underwear are seen in the kitchen of Doc's Beach House restaurant in Bonita Springs, Florida in this July 20, 2014 handout taken from security camera video released by the Lee County Sheriff's Office.

Three bare burglars burgle beef. Only in Florida is that not a tongue twister but the latest true crime.

in Viral Videos

Baby elephant meets a cat

Elephant Meets Cat

Maybe this elephant is more of a dog lover?

in Weird

Spider-Man charged with punching police officer

A costumed Spider-Man character attends the Be Amazing Volunteer Day held in the Queens borough of New York, Friday, April 25, 2014.

A street performer dressed as Spider-Man in New York City's Times Square was arrested after punching a police officer.