Twitter valuation reaches $25 billion on first trading day

Microblogging site Twitter shares rose 73 percent to reach $44.9 a share on the opening day taking the company’s valuation to $25 billion.

The stock closed at $44.90 a share from the initial public offering price of $26. At one point of time during the course of the day, the share reached $50.

It seems Twitter, which has 230 million users globally, has established itself in the same league as of Google and Facebook.

Ahead of its debut, Twitter priced its initial public offering at $26 dollar a share, thereby planning to raise $1.8 billion in the 70-million share offering. Twitter had earlier set a price band of 23-25 per share. Goldman Sachs, Morgan Stanley, JP Morgan, BofA Merrill Lynch and Deutsche Bank Securities acted as bookrunners for Twitter IPO.

Founded in 2006, Twitter has never been profitable and has history of losses totaling $419 million since its inception. But its revenue is growing. In terms of revenue, Twitter touched $317 million in 2012 and had a net loss of $79.4 million. Twitter’s loss has widened to $64.6 million in the September quarter from $21.6 million a year earlier whereas revenue has gone up to $534.5 million for the year ended September 30.

The company was founded in 2006 and had more than 230 million active users across the globe. As per second quarter, 2013 around three-quarters of Twitter users tweets from mobile device and 65 percent of its advertising revenue comes from mobile.

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