Investors Flock To Twitter With Its IPO

Twitter co-founder and chairman Jack Dorsey, and CEO Dick Costolo must be doing the Happy Dance today as investors not only flocked to buying up Twitter shares, but almost doubled its value, too. The company initially priced its shares at $26 but when they hit the floor at the NYSE they went as high as $50 before settling around the $45 mark, which is more than 70 percent higher than the set price.

 

By Mike Wheeler

Twitter co-founder and chairman Jack Dorsey, and CEO Dick Costolo must be doing the Happy Dance today as investors not only flocked to buying up Twitter shares, but almost doubled its value, too.

The company initially priced its shares at $26 but when they hit the floor at the NYSE they went as high as $50 before settling around the $45 mark, which is more than 70 percent higher than the set price. Listed as TWTR on the exchange, this currently gives the company a market capitalisation of $45 billion, but a clearer picture will emerge when the stock exchange closes and investors and analysts will better be able to understand the market’s reaction to the listing.

Unlike Facebook’s IPO, there has been less scepticism with Twitter’s listing, even though the company has yet to make any kind of profit. However, investors see the potential for growth amongst advertisers, especially as it is popular outside the US and amongst emerging markets, which would be attractive to companies trying to break into those areas.

In an interview with CNBC after the market opened, CEO Costolo said the money would go straight back into the company with priorities being to develop and maximise advertising strategies.

“It’s all about amplifying the existing characteristics of the platform,” said Costolo. He also mentioned the oft-talked about Twitter TV and the company’s intention to push “unique regional content into the platform.”

                                                                                                                           

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