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article imageTwitter surges in its debut on the New York Stock Exchange

By Mike White     Nov 7, 2013 in Business
On the first day the public could buy shares, Twitter stocks were priced more than 70 percent above their offering price Thursday.
The Beacon News reported price of the stock went as high as $50.09. By noon it was at $45.14, up 73.6 percent. On Wednesday night 70 million shares of stock in the company were sold at $26 each, generating $1.8 billion for the company, which has never had a profit in its seven years of existence. Had the stocks sold at $35 each, still far below the highest price today, $2.1 billion would have been generated. Twitter's revenue in 2012 was only $650 million by comparison.
When the stock exchange opened, the social network was valued at $31 billion — more than Macy’s. The opening day for the stock was the most anticipated public offering for stocks since Facebook last year.
Other tech stocks went down, with Facebook Inc. falling $1.02, or 2.1 percent, to $48.10.
"It clearly shows that demand exceeds the supply of shares. It's impossible to know what the real value is," the reported Wedbush analyst Michael Pachter commented.
Although the company has never made a profit, revenue has been increasing, and the company has invested a lot of money in more data centers and hiring.
The Times of India reported Twitter had 231.7 million monthly users in the quarter ending in September. That was an increase of 39 per cent from last year.
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