Twitter just Had It's IPO
If you follow the US stock market you might have heard that Twitter, that VERY popular 140 character website that seems to get people in trouble every day, had it's IPO today and that it was "valued" at $26 per share.
As of this writing Twitter (ticker symbol TWTR) is trading at $45.87. This is a whopping 76% gain in one morning. Not bad work if you can get it. In other words if you were lucky enough to get in on the IPO for say 100 shares which would have cost you $2600. Your profit would already be almost $2,000.
So what is an IPO and can I get in this. An IPO (Initial Public Offering) is the first sale of stock by a private company to the public. IPOs are often issued by smaller, younger companies seeking the capital to expand, but can also be done by large privately owned companies looking to become publicly traded.
IPOs can be a risky investment for an individual investor. It is tough to predict what the stock will do on its first day of trading as well as in the near future because there is usually little data available to analyze the company. Facebook was IPO'd in May 2012 at $28 per share , quickly traded to $41 and then fell into the low 20s. If you had bought into the hype and paid $41 you had a lot of regrets. Only now has it reached $47. so it was a long hard road.
Can i get in on an IPO ? Probably not . IPOs are geared to large institutional investors (pension funds, etc). It's easier to sell a 10,000 shares to a big Fund than 100 shares apiece to 100 different customers. But let's see how Twitter does over the next few weeks and see if it can sustain $45.87. I'll be following it and will keep you posted. I think it's a good thing the little guy can't get in here. Why spend $4600 for 100 shares when it was only thought to be worth $2600 for a 100 shares. There will be pullbacks.
And then if the stock falls back to $26, sit back and watch the Tweets !
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Glad you liked it. and thank you for the follow.