You have reached your limit of free articles this month.

Enjoy unlimited access to SpringfieldNewsSun.com

Starting at just 99¢ for 8 weeks.

GREAT REASONS TO SUBSCRIBE TODAY!

  • IN-DEPTH REPORTING
  • INTERACTIVE STORYTELLING
  • NEW TOPICS & COVERAGE
  • ePAPER
X

You have read of premium articles.

Get unlimited access to all of our breaking news, in-depth coverage and interactive features. Starting at just 99c for 8 weeks.

X

Welcome to SpringfieldNewsSun.com

Your source for Clark and Champaign counties’ hometown news. All readers have free access to a limited number of stories every month.

If you are a News-Sun subscriber, please take a moment to login for unlimited access.

breaking news

Detectives on the scene of Springfield car fire

Twitter soars in market debut


NEW YORK (AP) — Shares of Twitter went on sale to the public for the first time Thursday, instantly leaping more than 70 percent above their offering price in a dazzling debut that exceeded even Wall Street’s lofty hopes.

By the closing bell, the social network that reinvented global communication in 140-character bursts was valued at $31 billion — nearly as much as Yahoo Inc., an Internet icon from another era, and just below Kraft Foods, the grocery conglomerate founded more than a century ago.

Twitter, which has never turned a profit in the seven years since it was founded, worked hard to temper expectations ahead of the IPO, but all that was swiftly forgotten with the stock’s opening surge.

The most anticipated initial public offering of the year was carefully orchestrated to avoid the glitches and eventual letdown that surrounded Facebook’s first appearance on the Nasdaq 18 months ago.

Trading on the New York Stock Exchange under the symbol “TWTR,” shares opened at $45.10, 73 percent above their initial offering price.

In the first few hours, the stock jumped as high as $50.09. Most of those gains held throughout the day, with Twitter closing at 44.90, despite a broader market decline.

The narrow price range indicated that people felt it was “pretty fairly priced,” said JJ Kinahan, chief strategist at TD Ameritrade.

The immediate price spike “clearly shows that demand exceeds the supply of shares,” said Wedbush analyst Michael Pachter.

Earlier in the day, Twitter gave a few users rather than executives the opportunity to ring the NYSE’s opening bell. The users included actor Patrick Stewart, who played Captain Jean-Luc Picard in “Star Trek: The Next Generation”; Vivienne Harr, a 9-year-old girl who ran a lemonade stand for a year to raise money to end child slavery; and Cheryl Fiandaca of the Boston Police Department.

Twitter raised $1.8 billion Wednesday night when it sold 70 million shares to select investors for $26 each. Had it priced the stock at $30, for instance, the company would have taken away $2.1 billion. At $35, it would have reaped nearly $2.5 billion.

“In hindsight, when you look at this, you almost think they left a little too much money on the table,” Entner said.

Named after the sound of a chirping bird, Twitter’s origins date back to 2005, when creators Noah Glass and Evan Williams were trying to get people to sign up for Odeo, a podcasting service they created. Odeo didn’t make it.


Reader Comments ...


Next Up in Business

5 reasons why retailers are offering in-store fitness classes
5 reasons why retailers are offering in-store fitness classes

Why hit the gym when you can just go to the mall instead? Stores like Saks and Urban Outfitters are luring shoppers in with a new kind of trend — in-store fitness classes and wellness amenities. Here are five reasons why retailers think fitness will bring shoppers back to brick-and-mortar stores: 1. FIGHTING ONLINE SHOPPING As consumers increasingly...
Raising Cane’s Chicken Fingers: 3 things to know
Raising Cane’s Chicken Fingers: 3 things to know

Raising Cane’s Chicken Fingers opens its first Dayton-area location today at 1136 Miamisburg-Centerville Road in Washington Twp. Raising Cane’s joins an increasingly competitive chicken-restaurant market, with most of the recent growth focused on Dayton’s south suburbs. CHECK OUT THREE THINGS YOU NEED TO KNOW ABOUT RAISING CANE&rsquo...
Record travel expected for July Fourth weekend in Ohio, U.S.
Record travel expected for July Fourth weekend in Ohio, U.S.

A record-breaking number of travelers will hit the road in Ohio and across the U.S. for the July Fourth weekend, crowding highways and airports. More than 44 million Americans and nearly two million Ohio residents will travel for the holiday weekend, according to an analysis by AAA. That’s the highest July Fourth travel volume on records, and...
OHIO IMPACT: More Ohio Kmart, Sears stores to close by September
OHIO IMPACT: More Ohio Kmart, Sears stores to close by September

Sears Holdings will close 20 more Sears and Kmart stores in the U.S., on top of the 245 closings already announced early this year — and the latest round of cuts will affect Ohio locations. The company announced the latest closures to store employees early this week, according to Business Insider. The new list of closures include Sears department...
STORE CLOSINGS: 9 things that happened in retail in June
STORE CLOSINGS: 9 things that happened in retail in June

In a changing shopping landscape, retailers are fighting each other to stay relevant to consumers through shopping innovation — and 10 of them are doing it better than all the rest. THESE ARE THE COMPANIES MADE THE CUT BCBG Max Azria Group announced its reached an agreement on its restructuring plan and is set to sell its assets to...
More Stories