Twitter shares jumped 73% over its issue price while there was sharp selloff across all three major US equity indexes
Twitter on Thursday made a scintillating debut on the New York Stock Exchange (NYSE) with its shares jumping 73% over the issue price at $45.1 per share, valuing the microblogging site at nearly $25 billion. However, at the same time, there was sharp selloff across all three major US equity indexes with Dow, falling 153 points or 1.0% to 15,594. The weakness was widespread, with the Nasdaq dropping 1.9% to 3,857 and the S&P 500 losing 1.3% to 1,747 points on Thursday.
Twitter, whose public debut is the most highly anticipated initial public offering (IPO) since Facebook's $16 billion offering in May 2012, began trading under the ticker 'TWTR'.
Ahead of its debut at the NYSE, Twitter priced its IPO at $26 dollar per share, meaning it would raise $1.8 billion in the 70-million share offering, before expenses.
The microblogging site priced its IPO above the range of $23-$25 a share that it had set earlier in the week. Investors were watching Twitter's public debut with both caution and interest after the problem-riddled IPO of Facebook took away some shine from the social networking site's public debut on Nasdaq last year.
On Thursday, Facebook was trading at $48.6, down 1.1% on the Nasdaq.
Twitter, which lets people post news and comments in 140-character messages called tweets, is yet to make a profit after seven years in existence.
Twitter's loss widened to $64.6 million in the September quarter from $21.6 million a year earlier. Its revenue has gone up to $534.5 million for the year ended September 2013.
At the end of September, Twitter had 231.7 million monthly users, up 39% from a year earlier.
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