Twitter flies in first-day share trading
Hitch-free NYSE debut sees stock gain 73%; micro-blogger now worth $25bn
Twitter Inc's value rocketed to $25bn as its share price rose 73% in first-day trading following the microblogging company's Thursday IPO.
Shares opened at $26, rose to as high as $50 and closed at $44.90, despite Twitter having no history of profit making and analysts having expressed concerns about its lightweight intellectual property portfolio. Trading was 22 times that of projected 2014 revenue.
Other analysts expressed a more optimistic view, arguing that the mini-posting platform represents a now-indispensible Internet tool.
"When people use Twitter they are following certain people, they're searching for specific information," said Mark Mahaney, an analyst at RBC Capital Markets.
"There are powerful marketing signals that are almost Google-esque, something that Facebook doesn't really have."
Fellow social media concern, Facebook Inc faced a catalogue of glitches when it launched on Nasdaq's exchange. The New York Stock Exchange (Big Board), which has been trying to reposition itself as the exchange of choice for technology flotations, ran simulated launches to ensure it did not repeat its rival's mistakes. It appeared to work, with no hitches reported, leading Anthony Noto, the Goldman Sachs executive who led the IPO, to Tweet: "Phew."