Stock crashes after early earnings release
The Company’s stock crashes after financial analytics firm Selerity posts a quarterly report before the stock market closes. The report shows revenue growth at 74 percent in the quarter, which is below the company’s own forecasts. Twitter shares plunge on the news, and trading briefly halts so the company can disseminate its results. The drop steepens and the stock ends the day down about 18 percent. Executives attribute the slowdown to a transition to an advertising model that prices certain ads based on the result, such as whether the viewer downloaded an app, instead of whether the person simply clicks on it.
Closes at $93.89
Alibaba ($BABA) closes at $93.89 a share on its first day of trading on the New York Stock Exchange. The closing level is 38% higher than its IPO price of $68 but only 1.3% higher than its trading debut of $92.70.
$7.9 billion gain
The selling price of $92.70 in the first trade of Alibaba shares translates to an overall $7.9 billion gain from the $68 IPO price given the 320.1 million-share float. Figures from data provider Dealogic show the sum total created by all other stock debuts in 2014 including first-day losers is $5.3 billion.
Alibaba debuts at $92.70
Alibaba shares start trading on the New York Stock Exchange at $92.70 at 11:54 a.m. The stock symbol is $BABA. Alibaba is now a public company valued at more than $200 billion.
$BABA is #OPEN on the #NYSE at $92.70. Congratulations to @alibabagroup on today's #NYSEIPO! pic.twitter.com/9mCJbzNRTE
— NYSE 🏛 (@NYSE) September 19, 2014
‘Lots of whining by hedge funds’
News Corp reporter Tom Lauricella says hedge funds likely didn’t take kindly to the fact that the IPO allocation apparently focused on institutional investors:
About half of Alibaba shares go to 25 firms – likely long term investors. Lots of whining by hedge funds likely $BABA http://t.co/b5sWeIibIc
— Tom Lauricella (@LauricellaTom) September 19, 2014
Price discovery
The stock exchange explains its price discovery process as Alibaba’s price range shifts to $82-$85:
#Alibaba update: price range shifts to $82-$85. #NYSEIPO price discovery process continues… pic.twitter.com/IaOko3reZ4
— NYSE 🏛 (@NYSE) September 19, 2014
Tao doll
The New York Stock Exchange says it will keep a blue Tao doll presented to it to commemorate the Alibaba IPO on permanent display:
Thank you, #Alibaba: The Tao Doll is a sign of respect and will be permanently displayed @NYSE http://t.co/mV0cvKcRyZ pic.twitter.com/UlVwKAH6L1
— NYSE 🏛 (@NYSE) September 18, 2014
Big Board logos
Screens in the Big Board area display Alibaba logos:
Getting ready for the Alibaba here at the New York Stock Exchange $BABA pic.twitter.com/yG2rWNnSov
— Ben Eisen (@BenEisen) September 19, 2014
NYSE decorations
The New York Stock Exchange decorates its entrance with an American flag, a Chinese flag and an orange flag with the Alibaba logo for the company’s trading debut.
http://instagram.com/p/tIGuaDso9u/
Alibaba customers ring opening bell
Eight Alibaba customers ring the opening bell of the New York Stock Exchange on the company’s first trading day.
