On Monday morning, Twitter raised the price range for its IPO from $23 to $25 a share, before eventually settling on $26 for its IPO price. But after the company debuted on the New York Stock Exchange on Thursday, its trading price went well above expectations to $45.10.
It closed at $44.90 a share, 73% above its IPO price, after soaring as high as $50.09.
Based on this, Twitter is now valued at more than $30 billion. In comparison, Facebook's market capitalization is $120 billion.
Financial communications experts told PRWeek last month that they believed Twitter would avoid many of the missteps Facebook took in its own IPO debacle a year and a half ago. The JOBS Act enabled Twitter to keep its specific IPO plans and financials under wraps – an opportunity Facebook did not have when it filed last February. Because of this, Facebook's stock was overhyped, while Twitter largely avoided the harsh media spotlight. Facebook also dealt with a glitch on the NASDAQ stock exchange, which may be why Twitter decided to list on the NYSE.
On Facebook's first day of trading, its shares disappointed, and they continued to drop in value for weeks.
However, Twitter must now justify its valuation to investors. The company did not employ any PR agencies for its IPO filing, handling all of its communications in-house, Twitter VP of marketing and communications Gabriel Stricker told PRWeek. He declined to comment about the company's communications strategy for the IPO.