News / USA

Twitter Stock Makes Impressive Debut at NYSE

Twitter Stock Makes Impressive Debut at NYSEi
X
November 08, 2013 12:25 AM
The most hotly anticipated stock offering of the year did not disappoint. Shares of Twitter jumped nearly 75 percent above the opening price of 26 dollars at the opening bell of the New York Stock Exchange. The seven-year-old online micro-blogging service is now valued at more than $30 billion. But despite a stellar opening, many still have doubts about how profitable the company will be. Mil Arcega has more.

Twitter Stock Makes Impressive Debut at NYSE

The most hotly anticipated stock offering of the year did not disappoint.  Shares of Twitter jumped nearly 75 percent above the opening price of 26 dollars at the opening bell of the New York Stock Exchange. The seven-year-old online micro-blogging service is now valued at more than $30 billion.  But despite a stellar opening, many still have doubts about how profitable the company will be.

The little white bird soared at the start of the opening bell - raising nearly $2 billion on its first day as a publicly traded company.  Market analyst Max Wolff called it impressive.

“Well, we saw a very nicely staged, managed IPO of a very exciting company with obviously huge demand.  We had already heard that it was 30 times over-subscribed. We saw some evidence of it. And we basically saw this company triple off the low end of its range from just one week ago," said Wolff.

But analysts say don’t buy into the hype.  Investment manager Hilary Kramer says Twitter is a valuable brand, but it has yet to prove it can be profitable.  

“Twitter unto itself is a name and is a brand that has billions of dollars of value, but is it worth $30 billion? No.  I want to see some real profitability on the bottom line.  Twitter has to figure out how to make money," said Kramer.

Valuation experts say the immediate challenge is how to turn Twitter’s 230 million online users into willing consumers.  Economist Aswath Damodaran says boosting advertising revenue will be key.  He spoke with VOA via Skype.

“So they need people clicking on those ads and going and buying products because if that doesn’t come through, I don’t care how many users you have.  If you can’t make money off those users, nobody really cares," said Damodaran.

Twitter posted a $69-million loss this year, but Hilary Kramer says the smart investor needs to look beyond this.  She says what’s exciting is the company’s potential.

“A lot of the money that Twitter has raised in this initial public offering is going towards buying other companies that can help them get to that next step," he said.

Twitter shares closed at $44.90 on its first day. That's nearly 73 percent above its initial opening price -making it the second largest technology IPO on record.

You May Like

Mali's Female Basketball Players Rebound After Islamist Occupation

Islamist extremists ruled northern Mali for most of 2012, imposing strict Sharia law, and now some 18 months later, the region is slowly getting back on its feet More

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

Many Chinese-made products go unsold, for now, with numerous Vietnamese consumers still angry over recent dispute More

Koreas Mark 61st Anniversary of War Armistice

Muted observances on both sides of heavily-armed Demilitarized Zone that separates two decades-long enemies More

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Students in Business for Themselvesi
X
Mike O'Sullivan
July 26, 2014 11:04 AM
They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.
Video

Video Not Even Monks Spared From Thailand’s Junta-Backed Morality Push

With Thailand’s military government firmly in control after May’s bloodless coup, authorities are carrying out plans they say are aimed at restoring discipline, morality and patriotism to all Thais. The measures include a crackdown on illegal gambling, education reforms to promote students’ moral development, and a new 24-hour phone hotline for citizens to report misbehaving monks. Steve Sandford reports from Bangkok.
Video

Video Virtual Program Teaches Farming Skills

In a fast-changing world beset by unpredictable climate conditions, farmers cannot afford to ignore new technology. Researchers in Australia are developing an online virtual world program to share information about climate change and more sustainable farming techniques for sugar cane growers. As VOA's Zlatica Hoke reports, the idea is to create a wider support network for farmers.
Video

Video Airline Expert: Missile will Show Signature on Debris

The debris field from Malaysia Airlines Flight 17 is spread over a 21-kilometer radius in eastern Ukraine. It is expected to take investigators months to sort through the airplane pieces to learn about the missile that brought down the jetliner and who fired it. VOAs Carolyn Presutti explains how this work will be done.
Video

Video Treatment for Childhood Epilepsy Heats up Medical Marijuana Debate

In the United States, marijuana is classed as an illegal drug by the federal government. But nearly half the states have legalized it, to some degree. Proponents say some strains of marijuana might have exceptional health benefits, for treating pain or inflammation in chronic conditions such as cancer, multiple sclerosis and epilepsy. Shelley Schlender reports on a strain of medical marijuana developed in Colorado that is reputed to reduce seizures in childhood epilepsy
Video

Video Airbus Adds Metal 3D Printed Parts to New Jets

By the end of this year, European aircraft manufacturing consortium Airbus plans to deliver the first of its new, extra-wide-body passenger jets, the A350-XWB. Among other technological innovations, the new plane will also incorporate metal parts made in a 3-D printer. VOA's George Putic has more.
Video

Video AIDS Conference Welcomes Exciting Developments in HIV Treatment, Prevention

Significant strides have been made in recent years toward the treatment and prevention of HIV, the virus that causes AIDS. This year, at the International AIDS Conference, the AIDS community welcomed progress on a new pill that may prevent transmission of the deadly virus. VOA’s Anita Powell reports from Melbourne, Australia.
Video

Video IAEA: Iran Turns its Enriched Uranium Into Less Harmful Form

Iran has converted its stockpiles of enriched uranium into a less dangerous form that is more difficult to use for nuclear weapons, according to the United Nations’ Atomic Energy Agency. The move complies with an interim deal reached with Western powers on Iran's nuclear program last year, in exchange for easing of sanctions. Henry Ridgwell reports for VOA from London.

AppleAndroid