Twitter Stock Slumps as Lock-Up Expires
Twitter’s stock sank to an all-time low after a post-IPO lock-up period preventing employees and early investors from selling expired on Tuesday.
Lock-up periods prevent company insiders from selling stock following an initial public offering. CEO Dick Costolo and co-founders Jack Dorsey and Evan Williams have said that they had no plans to sell their stock when the lock-up expired, 180 days after Twitter’s initial public offering.
Still, Twitter’s stock plunged nearly 18 percent to close at $31.85 on Tuesday. Earlier, its shares hit their lowest point ever, at $31.72. Trading volume was unusually heavy.
San Francisco-based Twitter Inc. went public on Nov. 7. The stock soared as high as $74.73 in December, but has declined sharply since. The company’s latest earnings report, on April 29, surpassed expectations, but worries about user growth and engagement have weighed on its stock.
This article appeared in print in edition of Hamodia.
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