The Twitter logo is displayed on a banner outside the New York Stock
Exchange (NYSE) on November
7, 2013 in New York City. Twitter goes
public on the NYSE today.
But there’s no shortage of skepticism about the
debut, with many calling it a throw back to the hype of the dotcom
bubble of 1999 and suggesting that the price creates risk for investors.
Now, Twitter has to deliver.
Shares in the money
losing social media network soared in their stock market debut Thursday
to value the San Francisco company at more than $25 billion (U.S.)
That’s richer than long-established enterprises like Kellogg and implies
a multiple of sales nearly double the ratio at rivals Facebook Inc. and
LinkedIn Corp.
Listing under the
symbol TWTR, the stock opened at $43.10, 73 per cent above a $26 IPO
that had already been repriced higher, with demand outstripping supply
by 30 to one and the 70 million shares of the offering snapped up by
noon. The stock closed at $44.90 on the New York Stock Exchange.
Investors are betting
on potential growth at the seven year-old micro blog service, one that
that allows average people to interact with world leaders, entertainers
and sports stars, with the company striking while demand for Internet
stocks is hot.
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