Five years have now passed since the first of the three big public social media companies IPOd. LinkedIn (LNKD) priced on May 18th, 2011, and since then the stock has gained 182% from its IPO price of $45/share.
Almost exactly a year after LinkedIn went public, Facebook (FB) priced on May 17th, 2012 at $38/share. Four years later, Facebook shares are up 215% from that $38 IPO price, but in case you forgot, the stock experienced a serious draw-down in its first four months as a public company. While FB opened up huge on Friday, 5/18/12, it actually closed just 23 cents above its $38 IPO price that day, and the only reason it closed up was due to serious support that came in from its underwriters. The support from underwriters could only last so long, though, and by September 4th, 2012, FB had fallen 53% from its IPO price to close that day at $17.72. In hindsight, FB’s sub-$20 share price was such a perfect buying opportunity, but at that point there were a lot of questions surrounding the company and its mobile strategy. In any case, since its September 4th, 2012 low, FB has been an absolute beast, gaining 565%.
Following on the heels of success for LinkedIn and Facebook (eventually), Twitter (TWTR) went public on November 7th, 2013, pricing at $26 the night before. TWTR likely would have IPOd earlier were it not for Facebook’s initial struggles. It may not feel like it — it sure doesn’t to us — but TWTR has already been public for two and a half years.
Below is a chart showing the performance of LNKD, FB and TWTR from their IPO prices. What’s crazy is that TWTR gained more than both LNKD and FB in its first couple months of trading. By December 26th, 2013, after just 34 days of trading, TWTR had gained 182% from its IPO price to close that day at $73.31/share. Since then, it has been all downhill for TWTR. By August 2015, TWTR had given up all of its post-IPO gains, and as of this morning the stock is down 45.76% from its $26 IPO price. From its high of $73.31, TWTR is down 81%.