Twitter (TWTR) Routed as Sellers Want Out at Any Price

What started off as a major sell-off in Twitter, Inc. (NYSE: TWTR) has turned into a full-blown rout with shares of the social media stock down an astonishing 16.5% to $32.64 amid a massive IPO lock-up expiration.

In the lock-up expiration, approximately 480 million shares became eligible to be sold. With its IPO, Twitter only floated 70 million shares, meaning the lock-up expiration can potential increase the float by nearly 800%. Going into the lock-up, however, some investors were holding on to the fact that an estimated 275 million shares were attributed to holders that have disclosed they will not be sellers at the lock-up, leaving about 205 million available for sale.

On its quarterly conference call, Twitter management said they would not be offering shares for holders in a secondary offering - this appears to be a major miscalculation as it appears sellers want out at any price leaving the market very lopsided.

Given today's sell-off, the company's November 2013 IPO price of $26 per share is also coming into play.

You May Also Be Interested In

• SpaceX shares gain as lock-up fears ease
• DP World acquires six UK grocery logistics sites from GXO
• Eightco Holdings reports $378M in total treasury assets