Twitter value rockets to $24b

Twitter value rockets to $24b

Twitter’s value soared yesterday (Thursday) to US$24 billion after huge demand for its stock during the highly anticipated initial public offering (IPO) saw shares peak at US$50.

HumanIPO reported yesterday an initial market value was expected to be US$14 billion after the micro-blogging site settled on selling at US$26 per share, but so fierce was the competition the bidding opened the market at US$45.

The company’s share price peaked at US$50, but closed at US$44.90.

Analysts remained cautious however regarding the sustainability of such a value.

The Guardian reported Jeffrey Sica, president of Sica Wealth Management in New Jersey, as saying: “I anticipated a very strong open, but when you start to approach these levels, this is absolute froth.

“There is nothing supporting this range. I think this is just way, way above what realistically we should be considering.”

The social network’s co-founders Ev Williams and Jack Dorsey are now millionaires, with the former’s 59.6 million shares now worth more than US$2.69 billion, while Dorsey is worth more than US$1 billion with his 23.4 million shares.

Seven-year-old Twitter has more than 200 million users worldwide, 53 million of which are active in the United States.

Posted in: Social Media

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