iWorld

Twitter: Strong IPO, followed by even stronger opening

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/smartcrop_800x800/public/images/cndth-images/2013/11/08/nov38.png?itok=5VPT1Qfl

MUMBAI: It began with a tweet on its twitter handle which stated: “We just priced our IPO.” Attached with the tweet was a screen shot of the offering announcement.

And by the time Wednesday 6 November ended, the social networking site that has become a phenomenon across the globe had managed to raise $2.09 billion from its IPO, making it the seventh-largest US tech IPO ever, just ahead of Google, which raised $1.92 billion in its 2004 stock market debut, according to some estimates.

But there was more in store for stockmarket observers and investors as trading began on Thursday morning. The Twitter share - under the TWTR ticker - spurted 90 plus per cent in value as it soared to $45 per share during early trades and then to a high of $50. This took up the valuation of the firm to $25 billion or 32 billion or so, at the time of writing.

Yesterday's $26 price valued the microblogging service at $18.34 billion, on a fully diluted basis. That is 16 to 17 times forecast 2014 sales, a premium to rivals including Facebook, LinkedIn and Yelp, according to some analysts.

Twitter set an early price range of $17 to $20 for its IPO, which was considered cautious. But there was strong interest from investors, and the company was selling just 70 million of its 545 million shares, leaving an imbalance between supply and demand. That allowed the company and its bankers, led by Goldman Sachs' Anthony Noto, to raise the range to $23 to $25 and then pick a final price above that.

 

Analysts felt that the price should have been in the $21 range but the final pricing zipped past that. Other analyst and stock watchers had predicted that the share would go past the $40 market during day one's trading. The IPO was as much as 30 times over-subscribed.

While Twitter has a broad and powerful influence, its service is sometimes tricky to understand and use, which has reportedly limited the company's growth. Twitter has about 230 million users, including heads of state and celebrities, while Facebook has more than one billion.

However, Twitter lost $65 million in the latest quarter.

Twitter is expected to generate $1.24 billion in sales in 2015, according to some projections. Its adjusted EBITDA (earnings before interest, tax, depreciation and amortisation) margins will be roughly 6.5 per cent this year and 8.4 per cent in 2014, according to IPO underwriter forecasts that were shared with investors. In 2015, margins may jump to about 16 per cent, the estimates suggest.

During an interview given to CNBC, Twitter CEO Dick Costolo is believed to have said that investors should not be concerned about the company's current lack of profits, since its part of a plan to invest for the long term.

It looks like the investment community and public is buying his story for now - at least.

Latest Reads

http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/09/Uday-sodhi-800x800.jpg?itok=K65T_-1G
SonyLIV refreshes its brand identity 'LIV to Entertain'

MUMBAI: SonyLIV has yet again proved its status as a pioneer of innovation in its industry by unveiling a refreshed brand identity. The renewed brand ethos “We LIV to Entertain” promises to make SonyLIV the ultimate destination for rich entertainment across genres, screen types and audience...

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/Mark-Zuckerberg.jpg?itok=rZrcR1Lm
2016's top moments on Facebook

MUMBAI: Each year, Facebook reviews the moments, events and trends that people shared and talked most about. Today, we’re excited to share those top moments from 2016. The top moments represents most talked about, shared and discussed topics that dominated the year that went by.

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/AISH_01.jpg?itok=pMc51EA2
Arre's 'A.I.SHA | My Virtual Girlfriend' wins at WebFest

MUMBAI: Arré's first web series A.I.SHA | My Virtual Girlfriend has won the best overall web series and best suspense/thriller at South Florida WebFest in Miami. The show has been selected from among a selected screening of the best 27 global web series and short films that were shortlisted.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/Satnam-Singh_6.jpg?itok=JrgWFVmb
Netflix content offering includes Satnam Singh doc

MUMBAI: Satnam Singh Bhamra, first India-born basketball player to be drafted into the National Basketball Association (NBA), has received another big honour. His life has been made into a documentary. Titled, One in a Billion, the film was released on 6 December in the US. What’s even more...

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/Rajiv-Vaidya.jpg?itok=7QTJHb3w
'Regional VOD, cashless subs among 2017 trends'

MUMBAI: The video on demand streaming industry in India is only blooming, with a host of developments in this year. The digital eco-system has seen production houses like Balaji Telefilms, Indian broadcasting networks such as Star India, Sony Pictures Networks, Viacom18, Zee, etc and few...

iWorld Video On Demand
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/kabali-rajini.jpg?itok=8ebEQf-h
#YouTubeRewind: Celebrating what India watched & shared

MUMBAI: 2016 was the year when sidekick became the superhero - yes you guessed it right - Kabali ruled the charts to become top trending movie trailer. Kapil Sharma show featuring Salman Khan got company from our very own YouTube stars of The Viral Fever playing truth or dare with dad and All...

iWorld Social Media
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/08/Ambani.jpg?itok=4q2zKVBa
Telcos may migrate to ARPU-based model as 5-7 per cent hit feared

MUMBAI: Loss of revenue on account of competitive pressure catalysed by the extension of Mukesh Ambani-led Reliance Jio free services and demonetisation may cumulatively affect telcos by 5-7 per cent.

iWorld Telecom
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/07/viva-800x800.jpg?itok=t9hllk2-
Viva appoints Ashley before global OTT rollout

MUMBAI: Viva Entertainment Group, Inc., a developer of OTT systems through which television services are delivered using the Internet, has announced the appointment of FlixFling founder and CEO, Thomas Ashley, to its board of directors.

iWorld Over The Top Services
http://www.indiantelevision.com/sites/drupal7.indiantelevision.co.in/files/styles/340x340/public/images/tv-images/2016/12/06/deepa-kar.jpg?itok=P6sA-xhS
2016's top hashtag trends

MUMBAI: From Brexit, to GST, to US elections and now demonetisation, 2016 has been an eventful year so far, and continues to throw googlys at us in the last few remaining days (Tamil Nadu CM’s death). No wonder the netizens were exceptionally chatty on Twitter this year.

iWorld Social Media

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories