Twilio opens trading at $23.99 per share

Re:Twilio opens trading at $23.99 per share by jonknee on Thursday June 23, 2016 @01:14PM (#11962674)

The conventional logic is that you don't want to try picking up nickels in front of a steamroller by pricing your IPO too high and having it sag out of the gate. You want demand for the shares and then let the market price them. If Twilio had priced their shares at $24 they almost certainly wouldn't have sold them all and it would have been a really ugly IPO that resulted in a lower total market cap.

tl;dr sentiment is very important for IPOs

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Re:Twilio opens trading at $23.99 per share by tomp on Thursday June 23, 2016 @01:29PM (#11962816)

> sentiment is very important for IPOs

Who cares. Compare Twitter ("popping" IPO) vs. Facebook ("sagging" IPO).

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Re:Twilio opens trading at $23.99 per share by whatok on Thursday June 23, 2016 @02:00PM (#11963086)

I don't see the point in comparing the two but if you want to, Twitter had much better near-term post-IPO performance than Facebook did. We all know what happened after that. It's almost as if during a period where little fundamental information is available (post-IPO), something else must be driving trading (sentiment), while when more fundamental information is available (first earnings report), fundamental information plays more of a role.

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Re:Twilio opens trading at $23.99 per share by tomp on Thursday June 23, 2016 @02:21PM (#11963231)

Why would then companies want to cater to sentiment-driven investors?

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Re:Twilio opens trading at $23.99 per share by whatok on Thursday June 23, 2016 @02:27PM (#11963280)

How are investors supposed to value the company right now at this moment?

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Re:Twilio opens trading at $23.99 per share by jsprogrammer on Thursday June 23, 2016 @03:11PM (#11963619)

By selling at $20, they would have picked up another $50 million.

Probably, GS and JPM got a lot it instead.

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