The stock slumped $6.90, or 18%, to $31.85 as about 480 million shares from insiders became eligible for sale, more than quadrupling the amount available for trading. They declined even as early investors Chris Sacca and Rizvi Traverse Management pledged not to sell, declaring confidence in the San Francisco company.
Twitter's shares have slipped this year after the company reported slowing user growth, raising concern that it may not be able to add more mainstream members. Still, the company trades at a level that makes it more expensive than
"The lockup is the straw that broke the camel's back," said Daniel Ernst, an analyst at Hudson
Twitter's decline Tuesday was the biggest drop compared with lockup expirations from Facebook, LinkedIn,
Trading volume was higher than it was on the company's market debut. The decline leaves Twitter with a market value of $19.2 billion. That compares to the $19 billion Facebook agreed to pay for
The company said last week that its monthly active users in the first quarter reached 255 million, with year-over-year growth decelerating to 25% from 30% in the previous period.
In total, early investors who own at least 205 million of the shares pledged to hold on to their stakes. Chief Executive Dick Costolo and co-founders
Other Internet stocks were punished.