Blog & Company News
Nov 11, 2013
Twitter Opens High, Stays High – for Now
While Twitter going public is probably more substantial than mere "household news" in terms of the general public's awareness, its out-of-the-box value is equally worthy of mention. Before it rolled out, it was estimated (by the Company itself) to be worth about $26 per share. It opened closer to $45 and closed at just about $50 after its first day of trading.
Noteworthy, to say the least.
Surely, IPOs are designed to drive prices beyond "actual value" on the first trading day. That is to be expected. But could there be a connection to Facebook's current position around $50 that may serve to stabilize Twitter's market value? (The two are viewed similarly by the public, even if not by themselves.)
Needless to say, this story's ending remains amorphous. There are experts who recommend proceeding with caution as the Company still loses money (Twitter was down $71 million at the end of 2012).
With no crystal ball available, all we can do is keep our eye on the developments and proceedings and use such information to try and get a feel for what is "predictable market behavior" for the players in this ever-growing and evolving industry.