You Didn’t Miss Out: Twitter Shares Didn’t Double

by A Blinkin on November 7, 2013

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).

  • Daniel

    Good point, not much changed from the beginning to the end of the day. It’s hard to be one of those initial investors, but damn, it pays off if you are!

  • http://www.moneylifeandmore.com/ Lance@MoneyLife&More

    Love this! Most people the media without thinking and this is a case where I imagine a lot of casual investors might get in trouble.

  • http://thebrokeandbeautifullife.com/ Stefanie @ brokeandbeau

    “Hashtag: You didn’t miss out.” Brilliant.

  • http://www.miiockm.com/ Miiockm

    I was pretty disappointed to see that opening price of $45. When they originally stated a price of $26 I was somewhat interested.

  • http://www.StockTrendInvesting.com/ Van Beek

    Picking stocks like twitter is like gambling. Long term trend following is a more secure approach in my opinion.

  • Pingback: Why Twitter's IPO Sucked Bananas (In 10 Bullet Points) - funancials.biz

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