Twitter is going to go public TODAY (11/7/2013) and they have priced their stock at $26. They will be listed on the NYSE and their ticker symbol is TWTR.
4/28/2014 UPDATE: TWTR is down to $40.60 this morning and has had a very rough two months. This is a highly speculative stock and anytime earnings are not spectacular, the stock price will get hit hard. Earnings will be announced tomorrow after the close of the market.
Just like we saw with Facebook, this stock is getting a lot of interest and a lot of press. Every day there are countless articles written about the IPO and analyzing all aspects of it.
The Facebook IPO was a flop but now that the stock has recovered and is up into the $50’s, everyone is happy again. Everything is alright in the IPO world and that bodes well for Twitter. People will once again be in an IPO frenzy and clamoring to find out how to buy Twitter stock and get in early.
Are You A Big Time Investor? Do You Have Connections?
Update: Too late for this now as the stock is out and trading publicly.
If you are neither of those, you probably won’t be able to buy any Twitter stock before it goes on sale in the open market. With an initial public offering, there is a group of investment bankers that put the deal together. In most instances, they make the majority of the stock available to their favorite clients and to investors they have a long track record with. In other words, people with money and connections.
Sometimes though, there is a percentage of stock left over that is made available to different brokerage houses to distribute. The regular brokers you have heard of like TD Ameritrade, Schwab, E*Trade, etc. might eventually get some shares to sell to their preferred customers. They then figure out who they want to give access to so it really is a game of who knows who and who has the most influence.
My recommendation: If you have a sizable portfolio and/or have been a client with your broker for many years, you might try calling them and asking about Twitter IPO shares. Pick up the phone and ask your broker. Try to find someone on the other end of the line who might be able to get you in. Don’t hold your breath and don’t expect much but it never hurts to ask.
Do You Need To Find A Good, Reliable Discount Broker?
Now that the stock is trading on the open market, if you want to buy shares of Twitter you need to have an account with an online discount broker. There are some good ones out there that have been around for years and signing up is pretty easy.
I personally use TD Ameritrade and feel it is one of the best brokers for both beginners and experienced investors. It has a straight forward user interface and navigating the site is easy to learn. Please read my TD Ameritade review to get more information and learn what you need to do to open an account so that you can buy Twitter stock.
Should You Buy Twitter Stock On IPO Day (that’s today)?
99% of the investors out there will have to buy Twitter stock at its market open on the day it goes public or after. That means they will have to decide whether to jump in right away or hold back a bit and hope it goes down from its open.
Lets look at Facebook as an example. The IPO price was $38 but the first opportunity investors had to buy the stock found its price already in the $40’s. Any investor who waited a few hours found that the stock started going back down. Of course over the ensuing days and months the stock price went down a lot and was in the teens at one point.
So, if you want to buy Twitter stock on its first day of going public you have a choice: buy right away at the open and pay a price that might be inflated or be patient and hope it pulls back. Enthusiasm on that first day often drives the stock up initially and then it falls back.
Of course that might not happen and the stock could prove to be a winner right out of the gate and continue going up. What you do and when you decide to buy is your choice and there is no correct answer.