Nov. 7 - Retail investors piled into the Twitter IPO- sending shares up as much as 92 percent above its offering price in its debut trading session. Bobbi Rebell reports.
#Ring was the tweet sent by Twitter this morning at 9:30 am when the opening bell at the New York Stock Exchange rang. When shares finally opened- the first trade was at $45.10- that's 73 percent above the offering price of $26. They later soared as much as 92 percent in large part as retail investors swooped in. Max Wolff of ZT Wealth: SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST AND STRATEGIST, ZT WEALTH (ENGLISH) SAYING: "It's dangerous if and only if the person thinks this is a great long term investment. It could be, but if this is being done to be part of something, to have the certificate, to have the boasting rights to tell everybody at the cocktail party then it's a cost of entertainment." And expensive boasting right for many- shares of Twitter closed their first day at $44.90- below that first trade. Crowds were thick outside the NYSE- and inside the exchange- cheering the launch of the seven-year old social media phenomenon. The opening price valued shares at 22 times expected sales for next year- that's close to double rivals Facebook and LinkedIn. If the full over allotment is exercised- which is pretty likely- Twitter will have raised $2.1 billion. That puts it only behind Facebook- which raised $16 billion last year. Twitter's 230 million users include world leaders and celebrities- but it does not have a profit. Its growth potential is off the charts according to Wolff: SOUNDBITE: MAX WOLFF, CHIEF ECONOMIST AND STRATEGIST, ZT WEALTH (ENGLISH) SAYING: "I think this is one of the companies that is built to last. I think it does incredibly well in journalism. I think it's going to become the second screen with television. I think it has an incredibly bright future. The question is only how bright is that future, because at this point at $46 you have to believe the future of Twitter is brighter than the sun." Twitter's debut on the NYSE , lead by Goldman Sachs, went off without a hitch- a relief after the Facebook fumble at the Nasdaq last year.