On November 8th 2013, Twitter officially went on the New York Stock Exchange and raised a capital of $24 billion. The company’s share price of $26 rose immediately to $45 due to the limited amount of shares available as the stock market opened. As a result, the co-founders of Twitter Ev Williams and Jack Dorsey quickly became billionaires with shares valued at more than $2.69 billion. Twitter has slowly grown and now claims to have more than 200 million users worldwide and has 53 million active users in the US. It is quite an amazement considering that Twitter has never posted a profit in the past. Investors put in their money purely due to future speculations, which may or may not be realized in actual returns. The stock mark is in a bubble over Twitter but hopefully the party doesn’t end too soon for Twitter.
Sources:
http://www.theguardian.com/technology/2013/nov/07/twitter-share-price-ipo-stock-market