TWITTER IPO LIVE: Twitter stock opens up 73 pct

AP ^ | November 7, 2013 | Staff

[C19fan]

Twitter's stock debut up 73 above its IPO price, valuing Twitter at more than $31 billion. Twitter's trading debut is the most highly anticipated since Facebook's last year. Twitter will trade under the ticker symbol "TWTR." Twitter priced the initial public offering of stock at $26 per share, valuing the company at more than $18 billion based on its outstanding stock, options and restricted stock that'll be available after the IPO. The pricing means the short messaging service will raise $1.8 billion in the offering, before expenses.

[C19fan]

Maybe someone could educate me but if I was a Twitter executive or insider would not I be pissed off the Wall Street underwriters under priced the initial IPO price by over 70%. That gain went to the special clients of the underwriters who has access to the stock at the $26 a share IPO. Twitter missed out on almost $13 billion in funding.

[Dilbert San Diego]

Not quite sure how they value these IPOs, or how you value a company such as Twitter. Do they have any property, any hard assets of any kind, or is the value based on the number of users, ad revenues, or exactly how does this company have value?

Yes, it would be frustrating that the market value of Twitter is apparently far above the IPO price. The market value is whatever willing buyers and sellers agree on, and if the trading price is that high, clearly the IPO was undervalued.

[Resolute Conservative]

Seeing as twitter has never turned a profit... let me invest.

[BipolarBob]

It will be some time before they net one red cent.

[BipolarBob]

They have lots of servers and some trained technicians. So, yes they do have some hard assets.

[Foolsgold]

If you use SpamCop, you will note almost every spam comes through twitter