And a nightmare Tuesday for Twitter on Wall Street. At the start of the session, the stock dropped 9,81%, to 34,95 dollars per share, after having touched a low of 34,84 dollars per share. A value that also represents the lowest since the IPO last November 7, more than halved compared to the high of the same period at 74,73 dollars.
The expiry of the lock-up, the constraint that prevents certain shareholders (in this case the major investors) from selling securities for a certain time after listing, weighs on the stock's performance.
The lock-up affects almost 489 million shares in the hands of managers and employees of the company. Now that the bond has expired, these investors can therefore sell the shares in their possession. However, early investors, who control about 205 million shares, have already announced in recent days that they want to keep their share unchanged, giving an open expression of faith in the company's future.
For example, the co-founders Jack Dorsey and Evan Williams and the managing director Richard Costolo were of this opinion. Venture capital firm Benchmark and Rizvi Traverse Management, which with a 14% stake is Twitter's single largest shareholder, also said they would not sell.
