Twitter Stock Flies on Market Debut: $ 45 per share at the opening of the title

Twitter Stock Flies on Market Debut: $ 45 per share at the opening of the title

The initial estimates of the price per Twitter share, after the presentation of the IPO with the Securities and Exchange Commission with Goldman Sachs, Morgan Stanley and JP
Morgan as the main underwriters, were in a gap between 17 and 20 per share.

The figure had already been raised in a range between 23 and 25 dollars, and then up to $27 in the last instance, by issuing 70 million of securities on the market and providing an option to the underwriters to purchase another 10,5 million.

 

70 % More than Initial Estimates

An evaluation significantly higher than the initial projection, but analysts have estimated that the price on the day of the debut could spill beyond the established value of the offer.

In fact, at the opening on November 7 with the initials of Twtr, the title immediately jumped to 45.1 dollars, almost 70 % more than the initial forecasts.

Based on more than a little problematic experience of the Facebook quotation, the social with the bird decided to go public on the New York Stock Exchange, a stock market system “order -driven” based, less sectoral than the Nasdaq, specialized in the price of securities and software solutions, where the trading takes place instead in a “quote- driven” system.

Following the entry into the world share, in May of last year, Facebook had seen the value of its stock to lose more and more points in the days and months following the submission of the initial public offering, probably due to an overestimation of the shares with respect to the initial response of the markets.

A considerable disproportion that precipitated the price per share, thus risking even a refund to investors.

In the past year, however, Facebook has repaid the risk of shareholders, with a growth of +140 %, bringing the title to values ​​well above those set out in the initial listing of the IPO .

stock market signs

 

Twitter Focuses on Mobile Advertising

To encourage the increase of the value of the stock in view of the submission of the initial public, Twitter had  a clear strategy : the gains are derived primarily from advertising, although most of the revenue comes from grants the use of their data for analysis of user activity through the tweets.

About 75 % of users access the platform via Twitter mobile, and the acquisition of MoPub shortly before the entry in stock market shows the precise intention of Twitter to target the market for advertising on mobile, which generates most of the revenue in this sector.

 

With Instagram Twitter makes Take Off the Interest of Investors

Not to mention that, with a view to launching the offer, the release of the latest updates from the union of the group that provide  Instagram and Twitter services, it is decided as an invitation to advertisers who, encouraged by the greater space given to campaigns promotion through the use of imaging, take off the interest of investors to buy shares of the company.

What can be the result of the entrance of Twitter in the world of finance?

A huge increase of advertising space, to the benefit of advertisers and shareholders, may be and to the detriment of consumers and the usability of the service.

 

And you? What do you think?

Please let me have your thoughts in the comments below, thanks!

Author: Erik Emanuelli

Hi! I am Erik Emanuelli : entrepreneur, traveler and blogger. You can follow me on Twitter, add me on Facebook or circle me on Google.

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