Twitter (TWTR) shareholders GSV Capital (GSVC -2.3%) and the Firsthand Technology Value Fund (SVVC -4.1%) are selling off after the microblogging leader set an IPO price range that spells a valuation range of $9.3B-$10.9B, well below the $14B+ valuations that have reportedly been thrown around in private share offers.
The fact Twitter's pricing is generally viewed as an act of caution meant to avoid a repeat of Facebook's IPO, rather than business pessimism, is probably limiting today's losses. Analyst Dan Niles: "Twitter is not going to price this thing to get every single dollar off the table ... They want to price it so the stock goes up on the first day, at least."
Meanwhile, the NYT and CNBC both report Twitter plans to price its IPO on Wednesday, Nov. 6, which means shares would begin trading on Nov. 7. The WSJ previously reported Twitter was looking to price around Nov. 6.