Twitter tripped up on second day of trading

Day two saw the social network lose nearly $2 billion in value.

Twitter's headquarters, in San Francisco. James Martin/CNET

Twitter took flight Thursday in an impressive initial public offering that valued the company at $24.48 billion. Friday, the company's wings were clipped a bit as shares fell more than 7 percent.

Seven-year-old Twitter's IPO could be characterized by its anti-Facebook qualities . The smaller social network priced its shares at $26 apiece, opened with a healthy 73 percent pop at $45.10, then closed the day at $44.95. Clearly, investors were willing to give Twitter a pass on its money-losing business.

But Wall Street types, as usual, proved to be a fickle bunch. Though Twitter opened at $45.93 Friday, shares went in the opposite direction for most of the day. The company closed its second day of trading at $41.65, giving it a slightly more humble market value of $22.69 billion.

If Twitter is to soar on the public market, the company will eventually need to turn a profit from the attention of its 232 million active users. In the first nine months of 2013, Twitter lost $134 million on $422.2 million in revenue. Still, the company's proximity to all things live, particularly television, and its still-in-development advertising business have many willing to give it the benefit of the doubt.

About the author

Jennifer Van Grove covered the social beat for CNET. She loves Boo the dog, CrossFit, and eating vegan. Her jokes are often in poor taste, but her articles are not.


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