Based on the success rate of Facebook’s initial public offering, IPO, many presumed Twitter’s IPO would also fail; however, they were proven wrong. Twitter, also known as TWTR on the New York Stock Exchange, initially offered their shares at $26. It shot up to $50.09, and closed at $44.90, thus the price of the shares had a 72% increase within a day. In COMM101, we discussed the various factors that would result in a good IPO, such as the economy, the time of the year, and the exchange, of which was proven during the success of Twitter’s IPO.

The time of a company’s IPO is a very important factor. Luckily for Twitter, November is known for being one of the best months for market gains in a year, and the stock market during the time was at an all time high of 25%. The exchange is also a very important factor. During the sales of Twitters stocks, not only did the New York Stock Exchange “get the stock open, [but it also had it] trading in under 90 minutes”.

There are numerous factors that affect the success of an IPO, of which many private companies should consider when going public, of which contributed to Twitters opening success.

References:

http://www.economist.com/blogs/schumpeter/2013/10/twitters-ipo

http://finance.yahoo.com/blogs/breakout/4-reasons-twitter-ipo-rocked-where-facebook-rolled-192651553.html