Saturday, March 25, 2023
Tier10 Lab
Youtube Facebook Instagram Linkedin
  • Home
  • Explore
  • About
  • Connect with Us
  • Subscribe
No Result
View All Result
Tier10 Lab
  • Home
  • Explore
  • About
  • Connect with Us
  • Subscribe
No Result
View All Result
Tier10 Lab
No Result
View All Result
Home Digital

How Twitter’s IPO Stacks Up Against Other Tech IPOs

xaviervillarmarzo by xaviervillarmarzo
November 8, 2013
in Digital, Social, Technology
0
Twitter on Wall Street
325
SHARES
2.5k
VIEWS
Share on FacebookShare on Twitter

After Twitter’s first day of public trading on Wall Street, we all know by now how well it did – gaining 72.69 percent on its $26 initial public offering to close the day at $44.90. Not only did day one of trading thrust the company’s founders into the billionaire club, it also grew the company’s market value by $13 billion over the night before.

Twitter’s day one success has already been compared favorably to that of its top competitor Facebook, which gained less than one percent after its first day of trading on May 18, 2012. Aside from the dichotomy of the stock performance, Twitter also didn’t need its bankers to buy shares to keep the price above IPO on day one. Also unlike with Facebook’s IPO, Twitter’s insiders held off on selling the shares, keeping the money raised from the IPO for business. More than half the money Facebook raised went into the company’s early shareholders.

Compared to all of the well-known tech companies that have gone public since 2011, Twitter’s day one growth has seen the most success. For instance, online radio station Pandora gained only 9 percent on day one on June 15, 2011, going from $16 per share to $17.42. Groupon went public on Nov. 14, 2011, at $20, and gained 31 percent to close at $26.11. FarmVille-creator Zynga dropped 5 percent after its day one on Dec. 16, 2011, from $10 to $9.50.

Twitter’s IPO performance can probably best be compared to those of Yelp and LinkedIn. While neither company raised anywhere near a billion dollars on its IPO, their stock prices soared on day one. Yelp’s opening on March 2, 2012, saw the stock price grow 63 percent, from $15 to $24.50. LinkedIn actually performed better than Twitter, more than doubling from its $45 open to $94.25 at the closing bell in May 2011.

Historically, Twitter’s first day percentage growth was even better than those of Google, Yahoo, Amazon, Apple and Microsoft. However, even with its impressive debut, Twitter still has a long way to go to hang with those companies – even Facebook. While it may have done better than Facebook on its first trading day, it still has just one-fifth of Facebook’s active user base and lost over $133 million in the first nine months of 2013, compared to the $1 billion Facebook earned in profits before its IPO.

The IPO honeymoon is now over and the bar has been set very high for the company. The next few months will be crucial, as Twitter is set to roll in new features designed to bring in more revenue.
Image Source: DigitalTrends.com

Tags: IPOTwitterTwitter Compared to Facebook IPOTwitter Initial Public OfferingTwitter IPOTwitter Opening Day NumbersTwitter Stock MarketTwitter StocksTwitter Wall Street
Previous Post

Famous “Got Milk?” Campaign Hits 20th Anniversary

Next Post

Google Launches Helpouts, Real Time Help from Real Experts

Next Post
Google Helpouts

Google Launches Helpouts, Real Time Help from Real Experts

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

No Result
View All Result

Categories

  • #TBT (21)
  • Advertising (191)
  • Automotive (168)
  • Behind the Scenes (1)
  • Branding (119)
  • Design (45)
  • Digital (183)
  • Mobile (70)
  • Monthly Sales Report (17)
  • Social (176)
  • Technology (132)

Recent.

8 Content Marketing Best Practices & Examples

8 Content Marketing Best Practices & Examples

July 2, 2020
8 Content Marketing Tools You Can’t Live Without

8 Content Marketing Tools You Can’t Live Without

June 19, 2020
The  Ultimate Guide to Content Marketing

The Ultimate Guide to Content Marketing

June 5, 2020
Tier10_Logo_Lab_White_TM
Tier10lab is the official web presence of Tier10, reporting on the latest in Social, Creative, Technology, Marketing and more.
  • NEWSROOM
  • CONTACT
Youtube Facebook Instagram Linkedin

Copyright © 2008-2021 Tier10. All Rights Reserved

  • Privacy Policy
  • Accessibility
  • Data Security
  • Terms of Use
No Result
View All Result
  • About
  • Blog
  • Contact
  • Create your website with blocks
  • Home 1
  • Sample Page
  • Yop Poll Archive
  • Home
  • Explore
  • About
  • Connect with Us
  • Contact Us
  • The Team
  • Subscribe

Copyright © 2008-2021 Tier10. All Rights Reserved