US market dropped sharply Thursday as the S&P engulfed two weeks of price action after making new all-time highs in the morning. The Nasdaq showed relative by dropping 1.9%, as several high beta names got hit hard.
Twitter (TWTR) IPOed to much fanfare, but once it hit the open market the meat had already been picked off the bone. The IPO was initially set in the $17-20 range last week, but due to high demand leading up to the offering was finalized at $26 yesterday. However, by the time TWTR opened for trading it had been juiced all the way up to $45 and change, a price that most macro investors balked at. The stock did enjoy an early push up to touch $50, but faded most of the afternoon to close at $44.90, below its opening print.
Although many investors were disappointed not to get a better opportunity to get involved with the social media stock, overall the IPO could be considered a success from an execution standpoint. After the Nasdaq botched the Facebook (FB) IPO last year, today’s seamless IPO could help restore some confidence in market structure.
Disclosure: Scott Redler is short SPY, BBY, GOOG calls