Twitter is readying for its initial public offering (IPO), which could occur as early as tomorrow. According to CNBC, the company’s underwriters JP Morgan Chase, Morgan Stanley and Goldman Sachs, expect its share price to be above original estimates.
Most estimates pegged Twitter’s opening price between $23 and $25 per share, though new targets suggest it could fall in as high as $27 per share. The increase in price is in direct relation to demand for shares of Twitter. The decision lays in the hands of Twitter’s executive team, CNBC said, which is expected to meet later today on a phone call where the final price will be decided upon.
We already know that Twitter will list under the TWTR tickler symbol on the New York Stock Exchange, in hopes that it can avoid some of the follies that Facebook ran into when it started trading. Trading firms using the NYSE have already tested systems to make sure everything runs as smoothly as possible. Of course, Twitter’s price will vary after it begins trading.
One concern is that the company still isn’t profitable, so moving forward it will need to show investors that it can create new revenue streams, as Facebook has, in an effort to start driving a profit.
Update: Once the stock opened for trading on Nov. 7, the first quote was $45.10.