BY admin | November 8, 2013
Twitter (TWTR) stock price today is set to touch another high after touching around $50. Prediction of valuation is going to be difficult if the surge continues
Twitter went on sale to the public and was received by the market with overwhelming enthusiasm, quite exceeding expectations and cleanly wiping off the misgivings about its no profit status since its inception. Its success contrasted vividly with the rest of the market as it came crashing with the weight of GDP reading and easing of ECB.
Twitter made the day memorable by letting users instead of its top executives ring the NYSE’s opening bell. The diverse users included, quite adoringly, the 9-year-old Vivienne Harr, who ran a lemonade stand for a year to raise money to end child slavery and actor Patrick Stewart, the Jean-Luc of “Star Trek: The Next Generation’”.
Affectionate memories for Twitter, but colourless for the remaining market as it struggled. Unlike the IPO of Facebook that made NASDAQ look like a tempestuous sea, Twitter opening is considered safe. There were no major upheavals connecting the market to Twitter’s public offering and declaring the New York Stock Exchange’s work a success.
But the market did see upheaval, though it is not being connected to Twitter. It happedned just before Twitter’s IPO and investors were centered on economic fundamentals. The the Bureau of Economic Analysis had just announced that the U.S. economy had grown at a pace of 2.8% in the third quarter and in this investors saw lagging industrial activity and a stagnation of pent-up demand from torpid wage growth. In Europe ECB announced rate cuts reaching significant lows and falling consumer prices reaching a four year low.
Equities also fell, major names being Telsa with 7 per cent fall.
None of this connects to the IPO of Twitter and investors are rejoicing that Twitter prepared well to save itself from Facebook kind of debacle. But Economic history would mention the success of Twitter IPO and the fall of market on one chronological page.