By Matt Krantz, USA TODAY
The hotly anticipated IPO from social networking company Twitter is planning to list its shares on the New York Stock Exchange.
The move breaks a long-standing tradition of high-profile tech companies to list on the Nasdaq. For decades, the Nasdaq has been home to technology stock giants.
"This is a blow to the Nasdaq," says John Fitzgibbon of IPOscoop.com.
Following a number of glitches and problems, though, the Nasdaq's reputation with tech investors has dimmed. The initial public offering of Facebook last year was marred with technology issues and delays that resulted in confusion and legal action. And earlier in this year, the Nasdaq was frozen for hours, in a so-called "Flash Freeze" due to a technology problem with its quote service.
While losing Twitter to the NYSE is just the latest high-profile loss for the Nasdaq, the erosion had already started this year. Of the 21 technology IPOs to begin trading this year through late August, 13 have listed their shares on the NYSE, says Richard Peterson of S&P Capital IQ. That's well above the eight that listed on the Nasdaq.
And earlier in the year, tech giant and long-time Nasdaq member, Oracle, moved its listing over to the NYSE. As stock markets move to an all-electronic model, Nasdaq's claim to having a digital edge continues to erode. And now TWTR, Twitter's proposed ticker, will be the latest trophy for the NYSE.
"The ghost of Facebook was in the background," Fitzgibbon says. "The NYSE has lowered its requirements and hasn't had a trainwreck."