Twitter has opened trading with a bang like no other, with an opening that didn’t show any of the trouble that facebook saw Twitter has almost doubled at the start of trading. Within minutes of the opening “print,” the shares climbed and cracked the $50 mark, up more than 91% from Wednesday, before dropping to between $45 and $46. The low point ibeing $44.
Wedbush analyst MichaelPachter says high debut price suggests the Twitter IPO was managed well and ‘clearly shows that demand exceeds supply of shares.’ He added that it’s impossible to know what the real value is but still acknowledged that the price is ‘pretty high’ and not something he was expecting. In the most hotly anticipated technology stock market listing since Facebook last year, Twitter was expected to sell shares for up to $26 (£16), valuing the group at up to $18billion (£11.2billion). After the bell is rung, the stock market goes through ‘price discovery’ which is where the market determines how much shares will cost. This took about an hour in Twitter’s case.