Twitter shares on the first day of trading increased by 73%
Microblogging service Twitter on Thursday completed its first day of trading on the Stock Exchange of New York NYSE. Starting traded at around $ 26 per share, the company made the right marketing and financial account, since its shares to kontsk trading session up nearly 73% to 44.90 dollars per share, and in a moment of growth in the value of shares exceeding 85% of the price discovery. Investors say that during the IPO, the company earned in the sale of shares of U.S. $ 1.82 billion, while the holders of securities in the first day of trading at the expense of the sales transactions have earned another $ 1 billion on kursovom growth. According to statistics, the intraday rise more than 1 billion dollars of IT companies in the first trading day showed only Chinese company Alibaba Group.
Thus, micro-blogging service has been exposed at a higher assessment than Facebook, and its IPO has caused far less interest than the IPO Facebook . It is interesting to note that the interest of investors is on the background of the fact that Twitter is about five times less people than in Facebook, Twitter and the company has not yet become profitable since its inception in 2006. Nevertheless, investors are willing to evaluate it on the top rod cap, buying the company's shares initially high bar. According to the current market price of the shares, the total capitalization of Twitter is 24.9 billion dollars, accounting for 22 companies with annual revenue mark in annual sales of 1 , $ 14 billion.
At the time of IPO Facebook that has been estimated at 11.2 annual revenue (LinkedIn - 11.7 Proceeds). By the way, against 73% growth in Twitter, Facebook shares today on the Nasdaq fell 3,2%, LinkedIn - by 4.2%. Recall that Twitter was originally going to place their securities at the price band in the 17-20 dollars per share, while after meetings with investors, as well as the promise of a promotion in the area of mobile services, the price range of accommodation has been increased to 23-25 dollars per share, and on the eve of the IPO and up to 25-28 dollars. Obviously, this was done in the wake of an understanding of investor interest in the securities of the company. Nevertheless, many people, including those in Western markets, believe that Twitter's stock price more than $ 40 - it's too high a mark and now to purchase these securities have no sense - their growth potential has already developed and further growth can only be against profit, a significant audience growth or the introduction of some new and revolutionary solutions. "I was expecting a very strong opening, but when you begin to approach such price levels, then it is absolutely unfounded. Nothing supports this level.
All of this is starting to resemble a speculative strategy that many investors make more time to think, "- said Jeffrey Sica, chief investment officer of Sica Wealth Management in the U.S. New Jersey. According to market research firm Pivotal Research Group, now adequate price for Twitter is in the range of 30 dollars per share. Here they say that they are both analysts and investors worried by the fact that the company for 7 years and has not learned to earn, and the fact that investors want to invest there at such a high valuation. During the IPO, the company raised 1.82 billion Twitter dollars, while in 2004, Google raised $ 1.9 billion, but the latter has been profitable at the time.
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