Twitter (TWTR -16.9%) opened below $36 on lockup expiration day and has steadily moved lower since; today's volume (110M shares) is already over 8x the company's daily average.
A lack of a secondary offering to alleviate selling pressure might be contributing to Twitter's woes: On the Q1 CC, CFO Mike Gupta argued commitments from major holders not to sell (for the time being) eliminated the need for a secondary.
After factoring options/RSUs, shares still go for ~10x 2015E sales exc. cash.
The microblogging leader is headlining a fresh selloff in tech momentum plays. Yelp (YELP -12.7%) is also a noteworthy decliner - shares are now down 10% from where they traded prior to Yelp's April 30 Q1 beat.
Morgan Stanley is defending YY: The firm highlights YY's mobile music growth - revenue +180% Q/Q and now 8% of total music revenue - and considers worries about a government crackdown on illicit content overblown. Deutsche, meanwhile, recently called YY's 100.com online education platform "“a potentially disruptive force in standardized test-prep market."
Earlier: Twitter -4.9% premarket as lockup expires