Twitter stock will be open to the public for the regular individual investor on Thursday, November 8th, 2013, through almost any brokerage firm.
Twitter’s IPO will be tomorrow, November 7th, 2013, where most institutional investors, investment banks and underwriters like Goldman Sachs will carry out their order fills. The big players will go to the dance first while the little guys have to sit on the sidelines and wait it out.
Maybe not such a bad proposition as Twitter stock could be a volatile trade for a while.
Twitter has set their IPO price at $26 a share.
Twitter will open on the New York Stock Exchange which opens at 9:30 a.m. EST.
However, it has not yet been announced exactly when during the day Twitter stock will start trading.
Twitter will trade under the symbol TWTR
Twitter is following in the footsteps of its giant older brother Facebook by filing with the Securities and Exchange Commission to become a publicly traded company.
Twitter released their S-1 filing information on Thursday, October 3rd 2013, which included these important financials and company goals with this IPO listing: a list of the top company insider stock holders, a one billion raised cash target, produced details on how the company generates their revenue, plans on how the company will continue to grow and generate a profit, and information on particular potential pitfalls and obstacles that the company might encounter that could impede its growth and subsequently hurt future stock price value.
All of this is good to know if you plan on stepping up to the plate later this year to buy a small stake in this dynamic social network company. But how and where do you get started buying Twitter stock?
Individual small time investors like yourself have probably been asking this question: how, when and where can I buy Twitter stock?
Here are some general questions and answers regarding the Twitter stock and the Twitter IPO details:
When can I buy Twitter stock right now and when does Twitter stock start trading? First off, if your reading this post in October Twitter stock won’t be selling anytime soon. It might not be until December at the earliest when initial shares of publicly traded Twitter stock hit the open market. However, there might be some secondary markets that could allow picking up shares of Twitter right now in the private sale market.
What will be the opening stock price of Twitter stock? At this point we don’t know too much about Twitter’s opening stock price or range it will be trading in. Experts believe that the company on the low end could be valued at around 9-10 billion dollars and on the high end 13-16 billion, but that is just subjective speculation. Privately traded Twitter stock has been selling for around $16-$18 dollars a share; however, rumor has it that publicly traded Twitter stock will open somewhere between $20-$30 a share.
One of the problems figuring out the opening Twitter IPO stock price has to deal with the float as it may not be as high as previously anticipated. Twitter wants to raise around 1 billion in cash while inside shareholders might be reluctant to sell at the opening. These factors could lead to a tighter trading range on opening day where demand could push the stock price higher.
One word of caution, if you recall when Facebook opened their stock did a turnaround from its initial high and began to flounder over the next couple of months. The stock was literally cut in half and at one time saw around a $18 a share bottom. Many short term investors got burned as they began to panic when they saw their Facebook shares sink way below the initial purchase price over the following weeks and months.
But there is a good ending to this story as the long term investor is being rewarded as Facebook stock trades at an all time high here in October, 2013. Will Twitter follow the same path as Facebook’s stock chart or forge a long term trend upward in stock price after the IPO dust settles.
What will be the initial float of Twitter shares at the IPO date? This question again no one knows but Twitter will likely keep its float in check as many investors will be holding onto their shares. Twitter wants to raise one billion in cash to jump start the company into profitability and will be looking to sell enough shares to accomplish this goal.
Where can I buy Twitter stock? If you’re a small time investor then this is probably the most exciting question. IPO’s are always hard to get into early as most of the shares are gobbled up by investment bankers who can buy huge blocked shares for their privileged costumers and wealthy investors. However, recent trends show that the latest tech IPO companies usually allocate a small percentage of total float shares just for the little guy, and you can bet Twitter will do the same.
Most of the big underwriters have strict limits and minimal account requirements that must be met in order to place a buy order during the IPO phase. And this amount could be in the hundreds of thousands of dollars. Underwriters like the lead one Goldman Sachs will have a strong influence on how this stock is managed during Twitter’s IPO debut.
Other bankers are lining up to help sell Twitter’s IPO stock as well including Bank of America, JP Morgan Stanley Chase & Co and Morgan Stanley.
Twitter might keep up to 25 percent of the stock off the plate for investment bankers and leave that reserved for brokerage firms to sell to individual customers like you and me.
Usually brokerage firms like Charles Schwab, E-trade and TD Ameritrade might allow anybody with an account to place a “conditional” order to purchase Twitter stock. There could be some limitations. For one, orders might have to be placed with a minimum number of shares with initial investments costing up to a $1,000 or more.
However, I reiterate that we do not at this time have any more details on the procedures of Twitter’s IPO or how small a block of Twitter shares can be purchased by individual investors. We also do not know at this time which brokerage houses will be selling Twitter stock to individual investors that want to buy small quantities of shares and what will be the required minimum investment in able to purchase these shares.
Other conditions with buying Twitter stock through brokerage firms include the possibility that since shares will be limited there is no guarantee that a buy order will be filled for many clients. It is also not certain how many maximum shares can be purchased by individuals.
Twitter will trade under the TWTR stock symbol and will most likely trade on the NASDAQ, but this has also not been confirmed.
This post will be updated as soon as the official Twitter IPO stock purchase details emerge.
Do you think Twitter is a good buy right now for a long term investment? Please use the comment box below for your thoughts on investing in Twitter.
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