Twitter nears $32; Yelp, Pandora, YY also down big


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.

Pandora (P -8.4%) is down sharply after posting April metrics that included a slight M/M drop in listener hours, and YY (YY -7.9%) is selling off in spite of a Q1 beat and strong Q2 guidance.

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

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Comments (8)
  • ntc2014
    , contributor
    Comments (7) | Send Message
     
    disperato x aver comprato oggi TWITTER a 35
    6 May 2014, 04:21 PM Reply Like
  • manicdvln
    , contributor
    Comments (1544) | Send Message
     
    What all these garbage stocks have in common? They all had secondaries at ridiculous prices and they haven't made any profits, ever!!!
    6 May 2014, 04:22 PM Reply Like
  • 22643611
    , contributor
    Comments (2099) | Send Message
     
    TWTR all time low after hours $31.55
    6 May 2014, 05:00 PM Reply Like
  • Stone Fox Capital
    , contributor
    Comments (9881) | Send Message
     
    still say that TWTR has more long-term value than FB. TWTR will become the defacto source of breaking news while FB will fade away.
    6 May 2014, 11:56 PM Reply Like
  • manicdvln
    , contributor
    Comments (1544) | Send Message
     
    TWITTER IS WIKIPEDIA FOR SOCIAL MEDIA

     

    THINK OF IT AS WIKIPEDIA LAUNCHED ITS OWN IPO

     

    WHY WOULD ANYONE THINK IT WILL EVER MAKE MONEY?
    7 May 2014, 01:08 AM Reply Like
  • Moon Kil Woong
    , contributor
    Comments (13475) | Send Message
     
    LOL Twitter is also news and Facebook for those with ADD or who can barely read. Sadly, this may be a majority of teenagers.
    7 May 2014, 02:49 AM Reply Like
  • Patent News
    , contributor
    Comments (1475) | Send Message
     
    Twitter will be another 18% lower soon. Marked
    7 May 2014, 05:44 AM Reply Like
  • sofiacaden
    , contributor
    Comments (43) | Send Message
     
    The Global X Social Media ETF (SOCL), with holdings that include Facebook Inc. (FB), LinkedIn Inc. (LNKD), Pandora Inc. (P), Yelp Inc. (YELP), and Twitter, declined 3.78% http://bit.ly/1niGg8q
    7 May 2014, 09:03 AM Reply Like
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