Twitter Inc soared as much as 92 percent in its first day of trading on Thursday on the New York Stock Exchange as investors snapped up shares in the popular microblogging site in a frenzy that recalled the days of the dot-com bubble.
The shares opened at $45.10 a share, up from the initial public offering price of $26 set on Wednesday, then added to those gains, hitting a high of $50. They were up 73.7 percent to $45.15 at midday.
Sources said the flotation drew strong demand, with investors asking for 30 times the number of shares on offer as they bet on potential growth at the money-losing social media company.
The opening price valued the shares at about 22 times forecast 2014 sales, nearly double that multiple at social media rivals Facebook Inc and LinkedIn Corp.
The shares opened 73 percent above the $26 initial public offering price set on Wednesday, making it the biggest in a series of huge opening day “pops” for IPOs. Including restricted share units and other securities that could be exercised in the coming months, the company’s market value was over $28 billion. (REUTERS)
Patrick Stewart and nine-year-old Vivenne Harr, who uses proceeds from her lemonade stand to fight slavery, ring the opening bell as Twitter co-founder Evan Williams and and Boston police officer Cheryl Fiandaca look on. Photograph: Lucas Jackson/Reuters
