Twitter sinks to new low as 'lockup' expires | Bangkok Post: tech

Tech >

Twitter sinks to new low as 'lockup' expires

  • Published: | Viewed: 504 | Comments: 0
  • Online news:
  • Writer: AFP
- +

Twitter shares tumbled to fresh lows on Tuesday, under pressure after the expiration of the so-called lockup period, which banned sales by company insiders after its public offering. 

Twitter shares tumbled to fresh lows on Tuesday, under pressure after the expiration of the so-called lockup period, which banned sales by company insiders after its public offering

The stock was down 11.5 percent at $34.30 in late morning trade, the lowest level since the Twitter initial public offering last November.

Under US securities lockup rules, some insiders were barred from selling for a period of time after the social network's IPO.

The lockup expired on Tuesday, but Twitter co-founders Jack Dorsey and Evan Williams and chief executive Dick Costolo indicated they have no short-term plan to sell their shares.

Twitter made a spectacular Wall Street debut in November, rising from its $26 offering price to more than $70, but has been hurt by concerns about slowing growth and doubts on profitability.

Paul Ausick at the stock market website "24/7 Wall Street" said Twitter has also been hurt by a disappointing quarterly report which showed only modest user growth.

"One bit of good news is that CEO Dick Costolo told CNBC that the company has no current plans for a secondary offering because most of the big shareholders do not need the cash immediately," Ausick said in a blog post.

"Twitter stock may be a safe buy for a while, but unless the company can crank up its subscriber numbers, all those shares lurking in the background are an albatross that the company does not need."

Twitter said in a regulatory filing in March that "the market price of our common stock could decline as a result of sales of a large number of shares of our common stock in the market, and the perception that these sales could occur may also depress the market price of our common stock."

Bangkok Post online classifieds

Try buying & selling goods and properties 24/7 in our classifieds which has high purchasing power local & expatriate audience from within Thailand and around the world.

0 people commented about the above

Readers are urged not to submit comments that may cause legal dispute including slanderous, vulgar or violent language, incorrectly spelt names, discuss moderation action, quotes with no source or anything deemed critical of the monarchy. More information in our terms of use.

Please use our forum for more candid, lengthy, conversational and open discussion between one another.

  • Latest
  • Oldest
  • Most replied to
  • Most liked
  • Most disliked

    Click here to view more comments