What’s all the buzz regarding Twitter’s NYSE debut today? Twitter is taking over the New York Stock Exchange and the public is eating it up. Thinking about buying Twitter stock? Here’s five things to know about Twitter IPO and NYSE.
1. The magic number WAS $26. Twitter priced shares at $26 a pop, above the $23-$25 that had been predicted. The $26 price values the company at $18.34 billion. That’s more than Macy’s, which has a market capitalization of $17 billion, and Bed Bath & Beyond, which is around $16 billion. According to markets service Dealogic, Twitter becomes the second largest Internet IPO by an American company, trailing only Facebook. It’s also the third-largest U.S. IPO this year. UPDATED: Twitter actually began trading at a whopping $45.10 that’s more than 73% of it’s original set price.
2. A busy debut. As with many high-profile IPOs, Twitter will see plenty of activity on day one at the stock exchange. “We’re going to see enormous trading volume,” says Global X Funds CEO Bruno del Ama, who expects a bump in Twitter’s share price by the close of the markets. Once the initial Twitter buzz hits, the company’s share price will eventually fall back down. “In a few days after the IPO, you’re going to start seeing the stock price settling down a little bit,” says del Ama.
3. The world’s newest billionaires. Twitter co-founder Evan Williams, owner of the largest stake in the company, will reap the most rewards from the IPO launch. He’s expected to rake about $1 billion. If the stock price doubles, fellow co-founder and Square CEO Jack Dorsey would join Williams in the billionaires club. On March 21, 2006, Dorsey posted the world’s first tweet: “Just setting up my twttr.”
4. How prepared is the NYSE? There is some concern Twitter’s arrival could feature the same scattered technical glitches that plagued Facebook when it joined the Nasdaq last spring. However, following a successful test run, the NYSE appears confident it can handle the extra volume. “We are being very methodical in our planning for Twitter’s IPO, and are working together with the industry to ensure a world-class experience for Twitter, retail investors and all market participants,” said NYSE spokeswoman Marissa Arnold in a statement.
5. Should you get shares of Twitter? There are several ways for regular investors to snag Twitter shares, from working with a brokerage firm to buying through a mutual fund. But should you? As USA TODAY”s Matt Krantz explains, if you don’t know how to buy shares of IPOs, then don’t try. But even if you do invest regularly, you might want to hold off. As Krantz notes: “If the large, wealthy investors aren’t snapping up the shares, you should ask why not.”
Twitter is changing the way we view content mixing offline and online behaviors. Yes people. On October 9th, Twitter signed a deal with Comcast Xfinity TV cable service that let their viewers access TV shows and also buy movie tickets from Fandango directly from a tweet – seriously. Viewers will see a ‘see it’ button in a tweet for them to click and access the two services. The two companies are calling it an instant online remote control. And you thought social media was just for socializing – no it’s for consumers to be social, engage, view, and buy.
Imagine tweeting back and forth with your twitter friends about a popular show and then you have the option to “see it”. It sounds like the obvious next step in twitter and TV integration.
And that’s not all. The ‘see it’ button will allow Comcast Xfinity TV subscribers to set their DVRs, tune to shows online via TV or mobile device, and tweet in real-time. The channels that are currently on board for this new service with Twitter is NBC, USA, Bravo, and MSNBC. More channels will be added soon.
The company said, ”We are trying to take advantage of all these social media conversations by linking people to our great content,” said Sam Schwartz, Comcast Cable’s chief business development officer. “Social media has become another way people find TV shows they want to watch, and we want to be right there in that discovery process.”
The founders of Twitter could not have predicted this. Twitter and TV? But Twitter’s goal is clear now – if you enjoy watching good TV, take to Twitter and talk about – engage.
Scandal ranked #1 on the new Nielsen Twitter TV ratings for its season premiere last week. The popular drama clocked in 713,000 tweets reaching a Twitter audience of 3.7 million.
Breaking Bad’s season finale generated a record 1.24 million tweets. The conversation peaked at 22,373 tweets per minute.
Twitter’s history has been known for breaking news like the Arab Spring, US Airways Flight 1549 landing on the Hudson River, to Lady Gaga’s meat dress at the VMAs and now TV conversation.
Fred Graves, the head of Twitter TV said, “When viewers watch TV–their smartphone or tablet at their side–using Twitter to chat with their virtual friends about a program, it creates “the world’s biggest couch,” he says. And who better to have gossiping on the sofa with you than the star of the show?” I know you agree. I sure do. So if it’s Scandal, Breaking Bad, Games of Thrones, or Homeland, I look forward to reading the Tweets and engaging my Twitter friends in real time.
Nevertheless, Twitter has a few hills to climb – getting celebs to join Twitter and also Tweet about their TV dramas, which is the case with James Spader, the star of the highly rated The Blacklist. Spader is not on Twitter but the company is trying to get him on.
“The actor is returning to television this fall as a creepy criminal mastermind in a highly anticipated show called The Blacklist, Graver wants Spader on Twitter posting behind-the-scenes photos from the set, live-tweeting episodes, conversing with fans–and hell, maybe even tweeting creepy criminal-mastermindy things. That would be just fine.” (Fred Graver, Twitter’s head of TV)
And so as Nicole Laporte put it, “Today, Twitter and TV may be synonymous–a show is no longer a show without a requisite hashtag.”
Tell us what you watch and tweet.