Unless you’re living under a rock, you must have read the same headlines that I read:
“Twitter’s Stock Doubles!”
“Twitter Shares Soar!”
“Twitter IPO Price Up 73%”
After reading these headlines, you probably feel like you missed out. You’re probably saying something like:
“Man, I knew it was going to do well. I should’ve invested.”
Well, the contrarian in me is going to make you feel better.
You Didn’t Miss Out: Twitter Shares Didn’t Double
Twitter, the company that has successfully lost more than $350,000,000 over the past 3 years, set an IPO price of $26 per share. When investment bankers sell shares to institutional investors, this is the price they’re buying/selling at. But, unless you’re a pension fund, mutual fund, hedge fund OR you own a brokerage firm, you could not buy Twitter shares at this price.
If you wanted to buy Twitter’s stock at it’s opening price, you would have paid $45.10 per share.
The stock closed at $44.90.
So, you would’ve lost money.
Hashtag: You didn’t miss out.
For more information regarding Twitter’s IPO and how the IPO process works, read this article.
If you’re considering Twitter as a long-term investment, please read their S-1 Filing (directly from the SEC’s website).