photo credit: Anthony Quintano via photopin cc
After a frenzied day that likely will see the eventual induction into the billionaire’s club for both Twitter founders Evan Williams and Jack Dorsey, the debut for the company’s IPO is off to a much different, and more promising, start than that of the Facebook IPO debut. The initial price of $26 per share values the micro-blogging platform at $18.34 billion, more than $1 billion dollars over the value of retail giant Macy’s.
In contrast to the Facebook IPO, the NYSE was well prepared for the extra volume and no errors or technical glitches throughout the first day were reported.
The Dust Settles
The initial buzz has been all around the size of the bump that the IPO has seen on its first day of trading. However, first day trends for an IPO don’t typically tell the whole story. According to Global X Funds CEO, Bruno del Ama, “In a few days after the IPO, you’re going to start seeing the stock price settling down a bit.”
How Does This Affect the Casual Investor?
So then the big question is whether or not you should get shares of Twitter at this point. There are a few different options for investors to purchase shares of Twitter including working with a brokerage or obtaining through a mutual fund. Some advocates, however, say that is not wise to invest in an IPO if you aren’t already familiar. And Matt Krantz offers up further advice for casual investors: According to Krantz, “If the large, wealthy investors aren’t snapping up the shares you should ask why not.”