Shares of Twitter skyrocketed yesterday on its first day of trading on the Nasdaq in what analysts said was an emotional reaction to the highly anticipated, high-profile IPO.
"It's a passion play," said Max Wolff, chief economist at ZT Wealth. "Buying the IPO of Twitter is like buying the opening night of the Rolling Stones reunion tour."
The stock closed at $44.90, 73 percent above its $26 initial offering price after hitting as high as $50.09. That closing price put the value of the social network that reinvented communication in 140-character bursts at $31 billion — nearly as much as Yahoo Inc. and just below Kraft Foods.
The shares shot up because of the combination of a unique company, a relatively scarce initial offering and "stratospheric" attention, said Wolff.
"My guess is you'll see the shares settle below where they are," he said, predicting they'll end up around $30 to $32.
Jeffrey Sixa, president and chief investment officer of Sica Wealth Management, said any price over $40 reflects "hype."
Research firm Outsell Inc. put Twitter's fundamental value at about half of the IPO price, said analyst Ken Doctor. That figure is based on factors such as revenue and revenue growth.
"That's not unusual," Doctor said. "Especially for tech companies. You are betting on a big future."
Wolff said Twitter's $31 billion valuation after the first day of trading is not necessarily wrong, but "that's going to be tough to grow into." Still, Wolff said, "It's a good company with a bright future."
While the soaring stock price made Twitter founders rich, Boston-based Spark Capital also is in for a significant payday. The venture capital firm, led by Bijan Sabet, invested in Twitter in 2008, and owns 6 percent of Twitter shares.
Twitter, which hasn't turned a profit in the seven years since it was founded, worked hard to temper expectations ahead of the IPO, but all that was swiftly forgotten with the stock's opening surge.
The company had initially pitched an offering price of $17 per share, but raised the price twice after the deals became overbooked. The company received orders for about 30 times as many shares as it offered, according to Bloomberg.
The most anticipated initial public offering of the year was carefully orchestrated to avoid the glitches and eventual letdown that beset Facebook's first appearance on the Nasdaq 18 months ago.
Facebook closed just 23 cents above its $38 IPO price on that first day and later fell much lower. It took more than a year for Facebook shares to climb back above $38.
Anda sedang membaca artikel tentang
Twitter stock closes 73% above IPO price
Dengan url
http://wartawanlocal.blogspot.com/2013/11/twitter-stock-closes-73-above-ipo-price.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Twitter stock closes 73% above IPO price
namun jangan lupa untuk meletakkan link
Twitter stock closes 73% above IPO price
sebagai sumbernya
0 komentar:
Posting Komentar