Twitter prices IPO at $26


Twitter's (TWTR) IPO price is above its $23-$25 range, but below the $27 the company's underwriters were reportedly aiming for. Shares begin trading tomorrow.

Twitter raised $1.82B through its 70M-share offering. Based on common stock outstanding, the microblogging leader's IPO valuation stands at $14.2B. If one factors outstanding options and restricted stock units, Twitter's valuation is north of $17B. (S-1)

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Comments (15)
  • Joseph Poma
    , contributor
    Comments (439) | Send Message
     
    $17 Billion for a company with no profits... Looks like the DotCom Bubble is back again!
    6 Nov 2013, 07:11 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1339) | Send Message
     
    The phrase to remember is "Speculative Growth". Keep in ming that Twitter does in fact have a product and business model that people do in fact use daily and that some people are almost addicted to using. The REAL question is whether or not Twitter can monitize that product? That's what buyers are paying for. People thought Google was outrageously expensive when it went public. Now? Not so much. I'm not saying Twitter is the next Google or the "next" anything. However, it could be and that is what makes it interesting. Personally, I think Twitter is a lot more appealing then Facebook but if I can't get it at the IPO price, I'll pass on the after market until they report earnings in January.
    6 Nov 2013, 08:05 PM Reply Like
  • Brian Barbour
    , contributor
    Comments (1292) | Send Message
     
    You need to understand they can have profits quite easily if they wanted. They are doing basically the same as FB. Reel people in and make it a good experience without ads first then once they have a huge user base they introduce ads frequently, then there is there profits.
    6 Nov 2013, 10:30 PM Reply Like
  • ZGI Research
    , contributor
    Comments (13) | Send Message
     
    I am in the wrong business. Need to go virtual ASAP!
    6 Nov 2013, 07:55 PM Reply Like
  • James Sands
    , contributor
    Comments (2584) | Send Message
     
    Who is a buyer of Twitter......regardless of the price...

     

    Who believes the hype? Anyone out there....on SA
    6 Nov 2013, 08:23 PM Reply Like
  • rreeuwijk
    , contributor
    Comments (244) | Send Message
     
    I guess the answer is NO. Only a couple of institutional investors are getting shares at $26. Who is stupid enough to let them make money on the IPO....

     

    $18 B valuation on a company that might never make money!
    6 Nov 2013, 10:32 PM Reply Like
  • WisPokerGuy
    , contributor
    Comments (1339) | Send Message
     
    As I wrote above, I think you are missing the point.

     

    Why is Apple unloved by investors while Amazon continually surges higher? I mean Apple has a 12 P/E while Amazon has 150+. Apple just made more in net revenues in their last reporting quarter then Amazon has made in their entire history. What gives? The simple answer is that Amazon is viewed as having tremendous perceived growth while Apple's growth seems to be slowing.

     

    No one is buying Twitter today because the company is making tons of money now. The people buying Twitter are taking a calculated risk that Twitter can monetize their business model and in the future will reap the benefits. That is why I'm exercising my rights tomorrow to buy 500 shares at the IPO price. I will then file these shares away as a speculative holding in my portfolio for the next year or so. It'll either work or it won't. That is why it's called "speculation".
    6 Nov 2013, 11:34 PM Reply Like
  • User13219232
    , contributor
    Comment (1) | Send Message
     
    Every company has some percentage of "growth" factored in their stock price but for twitter, it is 100%
    7 Nov 2013, 12:31 AM Reply Like
  • jpbald
    , contributor
    Comments (37) | Send Message
     
    Me ,just kidding. Will day trade if I can get in under 30 . It looks like 32 would not be unreasonable target for a sell point . 6% day trade profit if it works out & with the hype surruonding this ipo shuold be no problem hitting that target . This is just a personal opion , not investment advice.
    7 Nov 2013, 12:05 AM Reply Like
  • statarb
    , contributor
    Comments (37) | Send Message
     
    Will be manipulated to rise to $30 momentarily after trading commences to find bag holders to dump the shares, but likely to settle below IPO price at close. $16 in a week and $9 in a month.
    7 Nov 2013, 12:31 AM Reply Like
  • alxacid
    , contributor
    Comments (10) | Send Message
     
    They will mine the data profitably and probably sell their market research.
    7 Nov 2013, 12:32 AM Reply Like
  • keentolearn
    , contributor
    Comments (137) | Send Message
     
    $17 Billion is not that unreasonable for twitter.
    7 Nov 2013, 03:29 AM Reply Like
  • Gloube
    , contributor
    Comments (93) | Send Message
     
    Remember during the Facebook IPO: people went MENTAL and insulted anyone buying the shares at $38. Now the shares are at fucking $49.

     

    Lesson: don't listen to people who think everyone else is a retard, because most of the time they are the retard
    7 Nov 2013, 06:10 AM Reply Like
  • Archman Investor
    , contributor
    Comments (3296) | Send Message
     
    Gloube:
    I am not so sure about that.
    $38 to $49 isn't exactly a "home run" as far as returns go. I would rather keep collecting my $thousands in monthly dividends than get a mere 30% return on Facebook since the IPO.

     

    Once our entitlement, dumbed down culture implodes on itself and the govt admits it cannot keep supporting the 100 million plus people in our country that do nothing yet have tons of time to waste on Facebook, Twitter, playing Zynga games, those people are going to have to re-enter reality and wont be able to afford to waste any more time.

     

    I'm am certain Facebook, Linkedin, Twitter, et al will eventually lose 80% or more of their values when reality of this morally, intellectually broken country wake up.

     

    In hindsight social networking and all those companies associated with it are going to be seen as nothing more than Wall Street hype & ponzi schemes with only the company founders/employees and Wall Street benefiting from all this hype.
    7 Nov 2013, 06:38 AM Reply Like
  • shiv420
    , contributor
    Comments (5) | Send Message
     
    if linkedIn and FB are $ 100-110 Billion and $ 24-25 Billion then I am damn sure that twitter should be somewhere around $ 55 billion by the in next two quarter....wait and see !
    7 Nov 2013, 06:43 AM Reply Like
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