On Friday, Twitter launched its much anticipated IPO with the New York Stock Exchange (NYSE) under the trading symbol TWTR. The initial offer price was set at $26 but jumped 73% to $45.10 when the NYSE opening bell rang. The decision by Twitter to launch its IPO with the NYSE comes after fears that Twitter might suffer the same technical problems that marred the Facebook IPO which caused many investors to loose millions of dollars. The cause of the technical problems experienced during the Facebook IPO were a result of the negligence of Nasdaq to prepare its systems properly for the IPO, the SEC has since fined Nasdaq $10 Million for its system failures.
Twitter has grown substantially since opening in July 2006 and has attracted a large amount of celebrities who prefer Twitter over other social media networks like Facebook. Twitter’s real time environment has lead to it becoming the go to place for breaking news and live coverage of sporting events, television shows and product unveilings. Personally I like using Twitter to gauge other people’s opinions about special events like Apple’s product unveilings or current news events.
Another problem Twitter has is Twitter syndrome, where people create Twitter accounts and then don’t know what to tweet, who to follow or why they are not gaining followers which leads them to stop using the service. Twitter needs to fix this problem and it needs to get new users interested in using its service. Many analysts feel that tech companies are often over valued and as a result their stock prices plummet when they don’t meet the high expectations of their share holders. It is going to be interesting to see how Twitter generates the profits shareholders will start demanding. User experience and customer satisfaction normally drops sharply when companies are too focused on making profits for their share holders. Lets hope that Twitter is able to keep its users happy while balancing the demands of their shareholders.