Twitter’s IPO price was set at $26 per share, valuing the company at $18.34 billion. Trading began on November 7th with the price rising to a high of $50, then closing at $44.90. At the end of the first day of trading, Twitter was valued at $25 billion! Keep in mind, this is a company that has never turned a profit and posted a loss of nearly $65 million for its most recent quarter.
Twitter and Hashtags Continue to Grow
Twitter has become part of the global culture with 230 million users tweeting, retweeting, following and lurking, that number continues to grow with no signs of slowing down anytime soon. How often do you hear a respected news anchor report on a tweet from a politician, celebrity, or even the Pope? Check out this funny #hashtag video done by Jimmy Fallon and Justin Timberlake. Whether we actively use the service or not, Twitter affects us.
Mark Mahaney, an analyst at RBC Capital Markets said, “When people use Twitter they are following certain people, they’re searching for specific information. There are powerful marketing signals that are almost Google-esque, something that Facebook doesn’t really have.” Google-esque?? We’ll see if Twitter joins the ranks of Google, in terms of profitability. In an interview with CNBC, Twitter CEO Dick Costolo said, “There’s nothing structural about Twitter that prevents us from having the kind of margin profiles of our peer group.” Read the interview for more on Twitter’s plans for the future.
You can click here to learn how to use Twitter’s new custom-timeline feature and click here to read about advertising opportunities on Twitter.
