Shares of social networking that shot 72.7 percent.
Newstovote - Twitter Inc. , scintillating debut at the New York Stock Exchange, United States. In the first trade, Thursday, November 7, 2013, shares of the social networking giant shot 72.7 percent to U.S. $ 44.9.
Shares trade coded TWTR it immediately rose when " bell " rings mark the start of trading. Stock prices 140 character micro-blogging site jumped to U.S. $ 49 at the beginning of the transaction.
During the first day of the transaction, Twitter share prices move in the range of U.S. $ 44 to 50.09, before closing at U.S. $ 44.9. Transaction volume reached 117.7 million shares recorded.
Acted as underwriters for the IPO Twitter is Goldman Sachs , Morgan Stanley, and JPMorgan Chase .
" Twitter Product is one of the most amazing I have ever seen in 31 years of investment in technology, " said Roger McNamee, co-founder of Elevation Partners told CNBC, Thursday, November 7, 2013.
However, market participants remain cautious dealing with the future performance of the company's social networkin . Some observers worry stock investors' enthusiasm Twitter could exceed the company's fundamentals.
Based on the IPO documents, Twitter only operating profit of U.S. $ 317 million in 2012. Twitter even had a net loss of nearly U.S. $ 80 million in 2012. In the first half of this year, Twitter is still scoring loss of $ 69 million.
Balance sheet was not experienced bleak Facebook before exchange floor last year. A year before the IPO, Facebook made a profit of U.S. $ 1 billion.
During 2012, the Twitter revenue was U.S. $ 316.9 million, equivalent to Rp3, 6 trillion. The revenue increased almost three -fold from 2011 to reach U.S. $ 106.3 million.
However, the management of Twitter revealed the company's commitment to increase investment in research and development. Funds are disbursed in 2010 amounted to U.S. $ 29.3 million, 7 billion, increased to U.S. $ 119 million ( R1, 3 billion ) in 2012.
The company also committed to expanding the market with funding starting at U.S. $ 6.3 million in 2010. The funds were subsequently increased to U.S. $ 86.5 million in 2012.
In terms of human resources, now Twitter has hired about 2,000 employees. The number was increased compared to June 2012 recorded 900 new employees.
Bob Peck, the first analyst who recommends a "buy " on shares of Twitter, also warned investors not to be too impressed with the TwTr coded stock debut. Although now, the value of Twitter 's market capitalization reached U.S. $ 24.9 billion.
The second biggest debut
Twitter set a price for its initial public offering ( initial public offering / IPO ) at $ 26 per unit. With these prices, the company expects the IPO to be the most interesting since Facebook made its debut on the bourses astonishing last year.
As reported by MarketWatch, the stock price increases the value of Twitter IPO to U.S. $ 1.82 billion. Twitter entered the second biggest debut in exchange for internet -based company after Facebook.
Based on data from Reuters, Twitter IPO value beat other social networking sites that exchange floor. Zynga began trading on December 15, 2011 earned the U.S. $ 1 billion, while Groupon reached U.S. $ 805 million on 3 November 2011 debut.
Furthermore, the launch LinkedIn inaugural transaction in the stock on May 18, 2011, only received proceeds of U.S. $ 406 million. Of course, Twitter is far IPO values Facebook that grossed over U.S. $ 16 billion on May 17, 2012 debut.
For the stock price increases, Twitter also beat Yelp debut on March 1, 2012. When started trading on the stock, the stock price rose 63.9 percent Yelp.
Strengthening TwTr coded share price was too outperformed Demand Media, which only rose 33.2 percent on debut January 25, 2011. Twitter is still better than Groupon shares, which rose 30.6 percent while his debut.
Twitter shares surge just lost a LinkedIn soared to 109.4 percent on the first day of trading.
High Demand
Before you start trading, Twitter had time to weigh the right price. Initially, the price offered in the range of U.S. $ 17 to U.S. $ 20 per share.
Furthermore, due to strong demand from market participants, Twitter share price range was raised to U.S. $ 23 to U.S. $ 25 per unit. Twitter share price eventually set at U.S. $ 26 on Wednesday, a day before the exchange floor.
" Prices set that shows the overwhelming demand, " says Carol Roth, a former investment banker and a CNBC contributor.
However , when it is dealing with investor caution , especially regarding the future of the company. " We do not believe the business model of Twitter will be as successful as Facebook or Google, " said Channing Smith of Capital Advisors Growth Fund.
According to Smith , the investor will still look at the performance of the management team, and how they run the business like a public company.
In the IPO, Twitter sold 70 million shares, or about 13 percent of the total shares outstanding. Number of shares released is smaller than the current Twitter Facebook IPO. At that time, Facebook boasts more than 421 million shares, representing 20 percent of outstanding shares.
Price U.S. $ 26 it gives Twitter a market capitalization of approximately U.S. $ 14 billion. This condition puts its position on top of the other social media companies, such as Groupon and Yelp.
However, it is still a market capitalization under LinkedIn, which reached U.S. $ 26.8 billion, or Facebook about U.S. $ 120.2 billion.
In an interview with CNBC, Chief Executive Officer ( CEO) of Twitter, Dick Costolo, said the company believes the IPO share price increase would still invite " enthusiasm " in the market.
According to Costolo, the company has conducted road shows and know that potential investors are very familiar with Twitter. This reflects how Twitter has been so strong.
" The enthusiasm of investors is very large , and they use Twitter 's own product, " Costolo said.
Sustenance
In addition to making the company a market capitalization swelled, Twitter stock debut, officials also bring blessings to the micro-blogging site.
Combined wealth of Twitter founder Evan Williams and Jack Dorsey, CEO Dick Costolo shared soared to U.S. $ 4 billion or around Rp45 trillion after its initial public offering.
Twitter share price surge instantly create wealth of its founder, Evan Williams, passing U.S. $ 2.56 billion.
Williams is the largest shareholder of Twitter, which controls 56.9 million shares. Wealth Williams jumped nearly double the previous estimate, after the initial public offering of shares on Twitter.
Other Twitter founder, Jack Dorsey, who has 23.4 million shares, his fortune is now worth U.S. $ 1.06 billion. Officially, Dorsey 's soaring property, placing it in a series of new millionaires.
Dorsey surge in wealth has been estimated at more than U.S. $ 1 billion before IPO Twitter.
Meanwhile, Twitter CEO, Dick Costolo, said the company's IPO is not just for personal wealth. However, fortune favor Costolo, because the value of his fortune participate soared to over U.S. $ 345 million.
Of course, Twitter is still top brass trio will see the fate of the company's stock in the coming months. Although, they will probably say no " matter " with their wealth.
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