After IPO soars, Twitter’s next challenge will be keeping its stock in flight, making money by Barbara Ortutay, The Associated Press Posted Nov 7, 2013 10:15 pm MDT AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email NEW YORK, N.Y. – Twitter’s stock took to its wings in its public debut, closing up more than 70 per cent. The day flew by with nary a hitch and gave birth to a new batch of Silicon Valley millionaires — even a few billionaires.Now comes the hard part. With Twitter’s value skyrocketing in just a day, the 7-year-old company that’s never turned a profit and has just a fraction of Facebook’s user base must prove to investors that it’s worth the money. Twitter stock ended Thursday’s trading at $44.90, giving the company a market value of $31 billion. That’s $13 billion more than on Wednesday night, when the company set its IPO price at $26.“Ultimately what you want is a nice pop,” said Roger Entner of Recon Analytics. “Everyone walks away with smiles from ear to ear.”Twitter, he added, “now just has to deliver on all this.”By the closing bell, the social network that reinvented global communication in 140-character bursts was worth nearly as much as Yahoo Inc., an Internet icon from another era, and only slightly less than Kraft Foods, the grocery conglomerate founded more than a century ago.The stock’s sizzling performance seemed to affirm the bright prospects for Internet companies, especially those focused on mobile users. And it could invite more entrepreneurs to consider IPOs, which lost their lustre after Facebook’s 2012 public debut was marred by technical glitches. In Silicon Valley, Twitter’s IPO produced millionaires and billionaires, some of whom are sure to fund a new generation of startups.Twitter worked hard to temper expectations ahead of the IPO. All that was swiftly forgotten with the stock’s opening surge.But the excitement may not last. The company isn’t expected to turn a profit until 2015. That could be a long wait for investors, especially if Twitter’s revenue growth slows. There are already signs that its user growth is decelerating.By Thursday’s close, Twitter was valued at close to 48 times its projected 2013 revenue of $650 million. In comparison, Facebook trades at about 16 times its projected 2013 revenue, according to analyst forecasts from FactSet.Google Inc., meanwhile, is trading at about 7 times its net revenue, a figure Wall Street follows that excludes ad commissions.Twitter’s stock looks so expensive to Brian Wieser of Pivotal Research that the analyst downgraded his rating on the stock to “sell” from “buy” on Thursday morning. While his overall view of the company’s prospects remained positive, Wieser thinks the high $20s or low $30s is a more reasonable range.Twitter, Wieser added, faces a slew of risks in the coming months, including the possibility that it will need more money beyond its IPO proceeds to fund its business.Twitter raised $1.8 billion Wednesday night when it sold 70 million shares to select investors for $26 each. Had it priced the stock at $30, for instance, the company would have taken away $2.1 billion. At $35, it would have reaped nearly $2.5 billion.But Twitter was purposely conservative in its approach. The most anticipated initial public offering of the year was carefully orchestrated to avoid the glitches and letdown that surrounded Facebook’s first appearance on the Nasdaq 18 months ago.Trading on the New York Stock Exchange under the symbol “TWTR,” shares opened at $45.10, 73 per cent above their initial offering price. In the first few hours, the stock jumped as high as $50.09. Most of those gains held throughout the day, with Twitter closing at $44.90, despite a broader market decline.The narrow price range indicated that people felt it was “pretty fairly priced,” said JJ Kinahan, chief strategist at TD Ameritrade.Named after the sound of a chirping bird, Twitter’s origins date back to 2005, when creators Noah Glass and Evan Williams were trying to get people to sign up for Odeo, a podcasting service they created. Odeo didn’t make it.By early 2006, Glass and fellow Odeo programmer Jack Dorsey began work on a new project: teaming with co-worker Christopher “Biz” Stone on a way to corral text messages typically sent over a phone.It was Glass who came up with the original name Twttr. The two vowels were added later. The first tweets were sent on March 21, 2006.By 2007, Twitter was incorporated with Dorsey as the original CEO and Williams as chairman. Dorsey and Williams would eventually swap roles. Both remain major shareholders, though neither runs the company. Glass, meanwhile, was effectively erased from Twitter’s history, writes New York Times reporter Nick Bilton in “Hatching Twitter: A true story of money, power, friendship, and betrayal.”Since those early days, the site has attracted world leaders, religious figures and celebrities, along with CEOs, businesses and countless marketers and self-promoters.The company avoided the trouble that plagued Facebook’s IPO, which suffered technical glitches. As a result, the Securities and Exchange Commission fined Nasdaq $10 million, the largest ever levied against an exchange.The glitches had lasting consequences for Facebook, which closed just 23 cents above its $38 IPO price on that first day and later fell much lower. The stock needed more than a year to climb back above $38. Those problems likely led Twitter to the NYSE.Research firm Outsell Inc. puts Twitter’s fundamental value at about half of the IPO price, said analyst Ken Doctor. That figure is based on factors such as revenue and revenue growth.“That’s not unusual,” Doctor said. “Especially for tech companies. You are betting on a big future.”As a newly public company, one of Twitter’s biggest challenges will be to generate more revenue outside the U.S.More than three-quarters of Twitter’s 232 million users are outside the U.S. But only 26 per cent of Twitter’s revenue comes from abroad. The company has said that it plans to hire more sales representatives in countries such as Australia, Brazil and Ireland.___AP Technology Writer Michael Liedtke in San Francisco and AP Markets Writer Ken Sweet in New York contributed to this story.
The BBC show’s writer, Stephen Moffat, has previously hinted that the third Holmes sibling might appear. In the final episode of series three, His Last Vow, character Mycroft, played by Gatiss, said: “I’m not given to outbursts of brotherly compassion… You know what happened to the other one.”Previously released pictures also show Watson and his wife Mary carrying their baby, with Sherlock looking distinctly unimpressed at the new addition. The first episode will be written by Mark Gatiss, who also stars in the show, and will see Sherlock awaiting the return of his nemesis Moriarty.“One mysterious case in particular baffles Scotland Yard – but Sherlock is more interested in a seemingly trivial detail,” information about the programme states.“Why is someone destroying images of the late Prime Minister Margaret Thatcher? Is there a madman on the loose? Or is there a much darker purpose at work?“Something with its roots deep in Mary Watson’s past…” Want the best of The Telegraph direct to your email and WhatsApp? Sign up to our free twice-daily Front Page newsletter and new audio briefings. Baroness Thatcher admires a statue of herself at the Guildhall Art Gallery The dark image show Benedict Cumberbatch as Sherlock Holmes The second episode of the series will be entitled The Lying Detective, assumed by fans to be a new version of The Adventure of the Dying Detective.The series, due to begin on New Year’s Day and one of the most hotly-anticipated shows of the season, will see Toby Jones join the cast as Culverton Smith, the dastardly villain of the second episode.Previous clues have hinted at the introduction of a second new character, Sherrindord, known to Sherlock aficionados as the detective’s older brother. Benedict Cumberbatch as Sherlock, with hound The teasing glimpse of the plot has now been released by the BBC, along with a new image of the show which will raise more questions than it answers.The photograph, starring Sherlock and Watson, sees water rising around their ankles and a series of strange items floating around them.They include a music score entitled “Miss Me?”, a copy of Shakespeare’s Henry V, a teacup, a sequinned Persian-style shoe, a yellow face drawn on the mirror, and a violin.A model RNLI lifeboat is also perched on the shelf, indicating something of a water theme.As usual, the image is likely to spark a frenzy of fan speculation, with a moving version of the picture debuted on the BBC at 10pm on Wednesday. The Abominable Bride, from the last series of Sherlock Toby Jones has been confirmed for the new series The BBC has long endured accusations of being full of left-wing luvvies. And the team behind Sherlock appear determined to play up to that reputation, as they announce a new episode in which a mysterious stranger is smashing up images of the late Baroness Thatcher.A New Year episode of Sherlock, starring Benedict Cumberbatch and Martin Freeman, will see a plot unfold around the extraordinary vandalism of six art works depicting the former Prime Minister.Information about the mischievous show states: “Why is someone destroying images of the late Prime Minister Margaret Thatcher? Is there a madman on the loose?” The title of the first episode is The Six Thatchers, already widely tipped to be an updated version of Arthur Conan Doyle’s The Adventure of the Six Napoleons.That 1904 story saw Sherlock presented with a seemingly trivial case of smashed plaster busts of Napoleon, abandoned on the scene in various shops and homes with nothing apparently being stolen.The 2016 update now seems likely to involve six similar busts of Lady Thatcher.For admirers of Lady Thatcher, the show could be seen as a case of art imiating life. In 2002, a real statue of the former Prime Minister worth £150,000 was decapitated by a protestor at the Guildhall Art Gallery, London.