Massive 12% drop in Twitter stock as insiders sell off shares

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Guevara

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Twitter shares fell more than 10% as Wall Street opened for business on Tuesday, marking the end of the lockup period that prevented executives, early investors and other insiders selling up to $20bn (£12bn) in stock following the social network's flotation last year.

Although owners representing a large proportion of the newly tradeable shares have promised to hold on to them for now, the lockup expiry is likely to put further pressure on a stock already battered by fears of a technology valuation bubble.

Twitter's shares are under pressure, trading at nearly half the $75 peak reached at Christmas and below the closing price on the first day of the flotation six months ago.

"This is clearly lockup related," said the new-media analyst Brian Wieser at Pivotal Research Group. "Not every investor will refrain from selling, many of which include early employees of the company who may well want to take money off the table. Even if they don't sell, the fear among investors will cause selling. The market is either experiencing heightened selling or anticipating it."
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http://www.theguardian.com/technolo...r-shares-fall-10-percent-stock-lockup-expires

Kind of a one-two punch after the disappointing earnings release last week
 
Although owners representing a large proportion of the newly tradeable shares have promised to hold on to them for now, the lockup expiry is likely to put further pressure on a stock already battered by fears of a technology valuation bubble.
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It's like you speculating asshats almost never saw it coming.
 
I don't know if this is exactly related to the OP, but I heard that Amazon is going to let you shop with Twitter. As someone who doesn't understand why people use Twitter in the first place, it was one of the dumbest ideas I've heard in a long time.
 
"Millions of users? IT MUST BE WORTH BILLIONS OF DOLLARS!"

The "logic" behind the social networking stock bubble shows just how stupid the financial industry is. Without any idea on whether something can be monetized, or how, they values companies like twitter and facebook at billions of dollars simply because there are a lot of people using them.
 
snacknuts said:
I don't know if this is exactly related to the OP, but I heard that Amazon is going to let you shop with Twitter. As someone who doesn't understand why people use Twitter in the first place, it was one of the dumbest ideas I've heard in a long time.
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Twitter is awesome, but so many of the concepts/ideas companies have for it don't seem to understand what's good about it in the first place.
 
A terrible product team is cannibalising their own product to promise their management that they can somehow make a product that makes money, and making things worse as they do so. And the stock market is seeing right through it.

Twitter has always been terrible. They should radically cut head count by scrapping their official clients, actively encourage third parties, and restrict the API terms to focus on carrying promotions, and then sell the shit out of that. A freemium upgrade might even work (god knows, I'd pay for a Twitter that wasn't run by idiots). Then build an ad sales business of the scale of Facebook's. Now they waste time on minutiae for probably negative reward, and can't make money effectively (which they left far, far, far too late).

I suspect they're doomed, in the long term. Maybe a decentralised client has a hope after all.
 
entrement said:
The Silicon Valley model doesn't seem sustainable.
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You would think people would realize that dumping large amounts of money into a company based around a single product isn't going to make additional products worth selling/using magically appear.... but nooooooope.
 
toxicgonzo said:
In it 4 da long run #YOLO #BUYBUYBUY
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I'm sure someone out there has a reasonable thesis as to why Twitter is undervalued, and a contrarian viewpoint can make you a lot of money. But damn if it wouldn't require balls of steel.

Personally I think everyone is right: Twitter might be a cool product but it's a terrible company.
 
massoluk said:
I'm almost afraid to ask for sounding like a dumb fool, but exactly how are they earning money?
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Twitter's $10 million Q4 "profit" is reported through non-GAAP, jumping a Q4 $511.471 million net loss to a $9.74 million net income with the exclusion of $521.197 million in stock-based compensation expenses.

In a way, it's shady accounting. But because of GAAP -> non-GAAP reconciliation, we can see a deeper insight into Twitter's troubles.

According to Barron's, Twitter is still a long way from profitability.
 
Twitter is a better potential ad platform than just about anything going, they know where you are, what you're interested in and what you're looking for most of the time.

They don't seem anywhere near realising the potential though....

#buybuybuy
 
I'd love it if the next, extremely influential, paradigm-shifting, best-thing-since-sliced-bread tech innovation just never ever goes public. What's the use of going public? Not everything has to scale up, lose its appeal, become bland and eventually go under.

Twitter seems also the kind of company that can basically be run by 50 people (just like Whatapp). What is the use of all these crazy money injections? Why did Twitter need the money they received from going public?

(I don't understand business or economics one bit, so could be totally off the mark here.)
 
perryfarrell said:
I'd love it if the next, extremely influential, paradigm-shifting, best-thing-since-sliced-bread tech innovation just never ever goes public. What's the use of going public? Not everything has to scale up, lose its appeal, become bland and eventually go under.

Twitter seems also the kind of company that can basically be run by 50 people (just like Whatapp). What is the use of all these crazy money injections?
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MySpaceTomREAD.png


This, pretty much. Make company, sell off, set for life.
 
It's almost as if the knowledge that Betty Smith likes Bruno Mars, drives a Ford Focus and uses Tide for her laundry isn't nearly as valuable as first thought.
 
Pizarro said:
Lmaoing at this. Peak value 12 billion and he sold it off for like 5% of that.

It works for Facebook well enough.
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do numbers like that make sense to you? I tell you, if they offered me that amount of money,I would sell. Let the sharks fight while you enjoy the view from your yacht.
 
Advertising on-line is weird.

I'm never influenced by advertising and always ignor...*looks to top of Neogaf page*...OMG BRB OFF TO USE THE DIRECT $0 FEE ONLINE TO BANK TRANSFER SERVICE TO INDIA BY WESTERN UNION
 
liquidtmd said:
Advertising on-line is weird.

I'm never influenced by advertising and always ignor...*looks to top of Neogaf page*...OMG BRB OFF TO USE THE DIRECT $0 FEE ONLINE TO BANK TRANSFER SERVICE TO INDIA BY WESTERN UNION
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I love discussions about advertising.

Everyone thinks they are immune.
 
I never understood the appeal of Twitter. There are so many weird issues like 140 character limit, and a complete clusterfuck to read.

I can understand why people enjoy facebook, but not Twitter.

Pizarro said:
Lmaoing at this. Peak value 12 billion and he sold it off for like 5% of that.
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I'm sure he's crying himself to sleep every night because he has a measly 580 million in his bank.
 
Here in a couple years Twitter will be ten years old. I wonder if that's when people will stop pretending to be perplexed and baffled by it.
 
Adol said:
Here in a couple years Twitter will be ten years old. I wonder if that's when people will stop pretending to be perplexed and baffled by it.
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Well, "only" 200 million people use it worldwide. And based on slowing growth, I doubt they'll get to 300 million.

That's a lot of people, but probably most people in the U.S. will never use it. It's almost niche.
 
GaimeGuy said:
"Millions of users? IT MUST BE WORTH BILLIONS OF DOLLARS!"

The "logic" behind the social networking stock bubble shows just how stupid the financial industry is. Without any idea on whether something can be monetized, or how, they values companies like twitter and facebook at billions of dollars simply because there are a lot of people using them.
Click to expand...

If you can't beat them join them. I always invite people who have this very same ideology on how the stock market works to give trading a shot, I mean they obviously have it all figured out so there is no reason why they shouldn't be able to make millions.

Every American has access to the tools investors use to buy and sell so if you already have this much insight, you are half way on your path to being a millionaire.
 
There is a wider market dynamic going on.

Twitter was simply a darling stock from the QE-pumped rally in stocks, QE-supported leverage in the markets is at an all-time high, and as soon as tapering began, markets started getting nervous. First emerging markets got rocked since December, and now over-priced US equities are on shaky grounds. Returns this years are meager, which coupled with further tapering, the borrowing spigot is getting shut down.

Twitter will be around, but it will be part of the written history of the dumbest stock market bubble to date... until the next one.
 
King Cobra said:
If you can't beat them join them. I always invite people who have this very same ideology on how the stock market works to give trading a shot, I mean they obviously have it all figured out so there is no reason why they shouldn't be able to make millions.

Every American has access to the tools investors use to buy and sell so if you already have this much insight, you are half way on your path to being a millionaire.
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are you patronizing me or giving me a backhanded compliment?
 
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