Twitter made its public debut on Thursday, November 7. Shares of the global platform to express yourself ended their first day with gains of 72.7%. Shares witnessed a correction on Friday, but are still trading far above the offer price at $41.65 per share. As the current valuation per user is in line with Facebook, it remains hard to say whether the valuation is too high or too low. While Twitter is not profitable yet, growth is quite impressive, as the company is still doubling its revenues on an annual basis.
The Public Offering
Twitter is well known from its simple text forms which are limited to 140 characters. The global platform allows people to create and distribute content real time, creating an unfiltered voice around the world. With the service, all people can contribute to "live" events which can be extremely useful in some situations.
At the moment, Twitter has more than 230 million active users, of which some 100 million are active every day. These users, including head of states, athletes and celebrities create some 500 million Tweets every day.
The timely creation and distribution of Tweets have shown great help in information distribution in natural disasters and political revolutions. Tweets provide timely information, especially when other communication means or mediums fail.
Twitter sold 70.0 million shares for $26 apiece, thereby raising $1.82 billion in gross proceeds. All shares were being sold by the company with no shares being offered by selling shareholders.
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