Twitter’s battered shares dipped below their IPO price on Thursday as investors worry about the company’s ability to grow its user base.
Twitter’s stock slid more than 7 percent on its second trading day Friday, after the popular short messaging service saw a huge first-day pop in what turned out to be a smooth public debut.
Shares of Twitter went on sale to the public for the first time Thursday, instantly leaping more than 70 percent above their offering price in a dazzling debut that exceeded even Wall Street’s lofty hopes.
Amid the excitement caused by Twitter’s highly anticipated IPO on Thursday morning, protesters—attempting to ruffle the feathers of the social media company—marched outside its headquarters in San Francisco decrying the city’s tax breaks for high-tech companies.
This, of course, is not the Bay Area’s first tech boom. But one of the differences this time around is that it comes after a recession.
Twitter has set a price of $26 for its initial public offering of stock, which means the company’s shares can begin trading Thursday on the New York Stock Exchange.
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As Twitter prepares to complete its initial public offering of stock this week, the San Francisco company’s history of losses totaling nearly $500 million is raising questions about its ability to turn a cultural phenomenon into a sustainable business.
In anticipation of Twitter’s initial public offering this week, San Francisco Mayor Ed Lee took a stroll down Market Street on Monday to check out and assess the rapidly changing Mid-Market area.
Twitter’s IPO could now raise more than $2 billion.