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Twitter, Chegg & Zulily: Why all tech IPOs are not created equal

on November 22, 2013

Gigaom

A few weeks ago when Twitter (s TWTR) launched its public offering, many were wondering why the company had not priced its stock higher, and some were amazed that it had left nearly a billion dollars on the table. While they were right to ask the question, what they didn’t understand was that Twitter was doing what it was supposed to do when it priced its stock at $26 a share.

Twitter Tweets Perfection

That price not only allowed Twitter to meet its own objective — to get over a billion dollars for selling a tiny piece of the company — it also allowed its employees to feel great about the company. It also meant that the stock had enough room to climb higher, which in turn ensured positive press around the company.

Twitter NYSE

But most importantly, it allowed its large institutional investors to buy up bigger positions in the…

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