Seeking Alpha

Major Twitter stockholders to retain shares despite end of lock-up

  • A six-month lock-up on 480M Twitter (TWTR) shares is due to expire today, releasing for trading tomorrow over four times the amount of stock that is already available. The securities also represent 82% of the company's outstanding shares.
  • The increased supply of stock could add to the 39% drop that the stock price has suffered this year, although major investors who hold at least 205M shares combined plan to hold onto their interests.
  • These include private-equity firm Benchmark, co-founders Evan Williams and Jack Dorsey, CEO Dick Costolo, and Rizvi Traverse Management, whose 14% makes it Twitter's largest shareholder.
  • Despite the sharp fall in Twitter's shares in 2014, Barron's reckons the stock is still overpriced, as the company trades at a "big premium" to other Internet plays, its user growth is slowing, and it "appears to be a long way from profitability."
Comments (10)
  • benitus
    , contributor
    Comments (2110) | Send Message
     
    It doesn't matter if the big guns are not selling. All it takes is 10% or 48 million shares to crash the stock, but I suspect the actual amount may be less than that.
    5 May 2014, 06:25 AM Reply Like
  • phemale60
    , contributor
    Comments (2880) | Send Message
     
    Y'all hopeful and rubbing your hands at the vision of TWTR's downfall. I find it cynical and disgusting.
    5 May 2014, 07:58 AM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    Only because you are stuck in a stock going down.
    We are here to make money which is why we have been laying out the
    reasons for TWTR to go down since it was in the 60's. You chose to ignore
    those reasons / facts and are now irrationally angry at those who have made
    money on the long side and then the short side.
    Emotions have no place in trading / investing.

     

    Never fall in love with a stock
    5 May 2014, 08:09 AM Reply Like
  • benitus
    , contributor
    Comments (2110) | Send Message
     
    Phemale60.....don't you fret none because TWTR will come back up after it hits rock bottom, which is certainly below $35 or even below $30 if the new shares coming onto the market tomorrow are overwhelming. Since you've come down so far, there's nothing you can do except to hope it doesn't touch $20, which is really the pits for TWTR. Live long and prosper, my dear.
    5 May 2014, 10:00 AM Reply Like
  • phemale60
    , contributor
    Comments (2880) | Send Message
     
    Stuck? I can sell whenever I want but refuse to take the "bait"! It's worth the risk because I see how Twitter is internationally utilized, here to stay and will only get better, despite the "usage" angle, which I think is Wall Street manufactured for people like you. Using stock market as a casino is what's giving it a stinky bad name and preventing millions from investing.

     

    Warms your little cold hearts I'll bet!
    5 May 2014, 10:07 AM Reply Like
  • 22643611
    , contributor
    Comments (2101) | Send Message
     
    You have come unravelled and want to blame wall street, short sellers,
    people who post facts, people who literally warned you this would happen,
    for your investment.
    Otherwise why post hateful nonsense about people wanting TWTR to die, etc...whether long or short a stock the point is to make money not post
    emotional diatribes about the way people trade / invest.

     

    If you want to blame others besides yourself then write a letter to twitter management - after all they are the ones who matter when it comes to the stock going up or going down.
    5 May 2014, 10:22 AM Reply Like
  • synchrogeddon
    , contributor
    Comments (250) | Send Message
     
    So... only 275M shares to go...
    5 May 2014, 06:46 AM Reply Like
  • phemale60
    , contributor
    Comments (2880) | Send Message
     
    I can always buy 1,000 more shares, average way down if it goes below $30 (kind of hope it does) and then who's going to have last laugh!
    5 May 2014, 10:09 AM Reply Like
  • Tri Duong
    , contributor
    Comments (1503) | Send Message
     
    What you're doing is increasing risk to increase gain. The shorters and put option players have cashed out with huge gains. They are the ones who will have the last laughs while you're still holding onto losses hoping for surge back up in the future.

     

    You need to learn how to mitigate risks when investing in highly volatile stocks like TWTR.
    6 May 2014, 11:08 AM Reply Like
  • benitus
    , contributor
    Comments (2110) | Send Message
     
    TriD.....you've said exactly what I always tell people, that we must learn to recover from our losses, before we can profit from the stock more often than we lose because only God knows which ones we pick are winners. One good strategy is when stocks have every likelihood to drop further, then it might be good to cash out and come back into the stock at a much lower price, so that any rebound will bring profits that will cover your earlier losses.
    6 May 2014, 11:52 AM Reply Like
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