(NEW YORK) — On its first day trading as a publicly held company, Twitter stock closed at $44.90, up 73 percent from the IPO price.
That means the company has a market value of $24.5 billion.
Even though the stock closed a bit lower compared to the open price, Twitter’s public debut went smoothly compared to Facebook’s technologically challenged IPO.
Twitter stock (NYSE: TWTR) rose 74 percent on the open to $45.10 and hit $50 at one point – almost double its $26 offer price. Retail investors who bought at $50 took a haircut. The lucky few institutional investors and their favored clients who got in at $26 made a bundle.
Twitter makes its money from advertising and like almost any media company has to strike a balance between revenue and clutter that could potentially turn users away. The company has never made a profit, though revenue is rising swiftly.
Only time will tell whether Twitter remains an indispensable social media service or whether it turns into an unenviable has-been like MySpace and Friendster.
The markets in general did not have as good a day as Twitter; all three major indices ended the day down. The Dow closed down 152 points, the S&P 500 was off 23 and the Nasdaq finished down 74 points. Good news about the U.S. economy had investors worrying that the Federal Reserve will pull back on stimulus.
Copyright 2013 ABC News Radio
Madison Park, Keith Allen and Andreas Preuss, CNN