Call it a Wall Street wing ding. Twitter (TWTR) stock has been issued and will start changing hands in a matter of hours. So far the social network is proving to be anything but a featherweight in its stock market debut. Shares were priced at $26 last night. That was above the range of $23 to $25. The deal raised $1.82-billion for the company and it gives Twitter a market capitalization above $14-billion. Never mind that the site has never turned a profit. So, what should we make of all this? Watch Hot Stock Minute Host Lauren Lyster discuss the Twitter IPO with Yahoo Finance Senior Columnist Mike Santoli in the video above.
Breaking news: GDP for the third quarter was way above estimates. The Commerce Department says its first reading on the quarter was at an annual rate of 2.8%. Estimates had been for 2.0%. Growth in the second quarter was 2.5%. Meanwhile the Labor Department says there were 336,000 new weekly jobless claims last week. That's pretty much in line with estimates which were for 335,000 claims.
Jenny Craig has lost its sugar daddy. The weight loss chain is being cast off by its current owner Nestle. It's being sold to North Castle Partners which also owns the fitness chain Curves, and plans to combine the companies. Right now Jenny Craig has 600 diet centers mostly in the U.S. and Australia. No word on the chain's purchase price.
Internet killed the video store. All 300 corporate-owned Blockbuster's are closing in the coming months. The chain is currently owned by Dish Network (DISH) which bought Blockbuster out of bankruptcy in 2011. About 50 franchised stores will have the option to remain open. By the way Dish Network stock is up 32% year-to-date. It hit a 52-week high near the end of October.
STOCKS TO WATCH
Whole Foods Market (WFM) is down more than 9% on its earnings, which came out after yesterday's closing bell. The company actually beat earnings estimates by a penny with 32-cents a share. But sales disappointed, failing to break the $3-billion mark. Perhaps more critical, the company reported slowing growth, and it also lowered the sales forecast for 2014. As of yesterday's regular close, Whole Foods shares were up 40% year-to-date.
Next up is Elon Musk's SolarCity (SCTY), which like Tesla (TSLA), has seen brighter days. It has been down about 9% in early trading on its quarterly report. SolarCity lost 43-cents a share, which was actually a penny better than expected. It also had a substantial beat on revenues which were $49-million. Excluding this morning's drop, SolarCity is up 383% year-to-date. That's even better than Tesla which is now up 327% year-to-date. As for Tesla it dropped more than 14% yesterday after the release of its quarterly report.
Disney (DIS) reports after today's closing bell. The world's largest entertainment company is expected to post earnings of 76-cents a share up from 68-cents a year ago. As for sales, they've likely climbed about 6% to $11.4-billion. Right now 17 analysts rate Disney a buy and 10 list it as a hold. Just this week, Wunderlich Securities raised its price target on the stock to $77 from $65. Shares ended yesterday's session at $69, up 35% so far this year.
Two Nasdaq giants report after the bell: Groupon (GRPN) and Priceline (PCLN). As for Groupon, the online deal site is expected to post profits of just a penny, down from 3-cents a year ago. That would be on an 8% climb in revenues. Meanwhile, Priceline, is expected to post earnings of $16.15 a share up from $12.40 a year ago. On revenue that's shot up nearly 30% to $2.22-billion. Since we're talking about the Twitter I-P-O today we thought we'd show you these two stocks since their IPO's. As for Groupon, it's now down 61% since it went public at the end of 2011. Priceline is up 119% since its debut in 1999. But it's skyrocketed more than 1,800% since the financial crisis.