Twitter worked hard to make sure that its initial public offering didn’t turn into the kind of debacle that Facebook FB -3.18% experienced when it started out as a publicly-traded company. Twitter sold 70 million shares for $26 each in its IPO and so far on Thursday things are looking very different than they did back in May 2012. The company operates in a highly-competitive industry, however, and will still have to work hard to justify the valuation that investors have given it, but here are 10 ways Twitter’s IPO differed from Facebook’s IPO: 1. Banker Buying Not Needed. Twitter’s stock hasn’t needed massive support from its bankers to trade above its IPO price and is headed to close well above it on the first day of trading. In May 2012, Morgan Stanley MS -1.41% had to feverishly buy Facebook stock to keep it above $38. 2. New York, New York. Mark Zuckerberg rung in the Facebook IPO on Nasdaq at a ceremony in Menlo Park, Calif. But Twitter chose to buck the long tradition that has seen hot Silicon Valley tech companies list on Nasdaq and instead chose the New York Stock Exchange. Twitter CEO Dick Costolo and the company’s founders showed up in lower Manhattan this morning prior to Twitter’s opening on the NYSE. 3. No Stock Market Glitch. Shares of Twitter started trading on Thursday morning without any problems. In Facebook’s case, an issue with Nasdaq’s computer programming delayed trading for some 30 minutes and caused confusion among traders. As a result, Nasdaq ended up paying a $10 million fine to the Securities & Exchange Commission and tens of millions more to brokers who lost money.
Thursday, November 7, 2013
Ten Ways Twitter's IPO Didn't Turn Out To Be Like Facebook's IPO
Twitter worked hard to make sure that its initial public offering didn’t turn into the kind of debacle that Facebook FB -3.18% experienced when it started out as a publicly-traded company. Twitter sold 70 million shares for $26 each in its IPO and so far on Thursday things are looking very different than they did back in May 2012. The company operates in a highly-competitive industry, however, and will still have to work hard to justify the valuation that investors have given it, but here are 10 ways Twitter’s IPO differed from Facebook’s IPO: 1. Banker Buying Not Needed. Twitter’s stock hasn’t needed massive support from its bankers to trade above its IPO price and is headed to close well above it on the first day of trading. In May 2012, Morgan Stanley MS -1.41% had to feverishly buy Facebook stock to keep it above $38. 2. New York, New York. Mark Zuckerberg rung in the Facebook IPO on Nasdaq at a ceremony in Menlo Park, Calif. But Twitter chose to buck the long tradition that has seen hot Silicon Valley tech companies list on Nasdaq and instead chose the New York Stock Exchange. Twitter CEO Dick Costolo and the company’s founders showed up in lower Manhattan this morning prior to Twitter’s opening on the NYSE. 3. No Stock Market Glitch. Shares of Twitter started trading on Thursday morning without any problems. In Facebook’s case, an issue with Nasdaq’s computer programming delayed trading for some 30 minutes and caused confusion among traders. As a result, Nasdaq ended up paying a $10 million fine to the Securities & Exchange Commission and tens of millions more to brokers who lost money.
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