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Twitter Tanks 11% To New Record Lows As Hundreds Of Millions Of Its Shares Unlock

TechCrunch logo TechCrunch 6/05/2014 Alex Wilhelm

Today a massive quantity of Twitter stock unlocked, allowing shareholders in the firm that have long held stock in the social giant to sell their equity. The impact, perhaps as expected, is a bloodbath, with Twitter sinking more than 11 percent at the time of writing.

Twitter is trading around the $34.40 mark, up slightly from a new record low of $34 that it set earlier today. It’s worth comparing this to the day that 800 million Facebook shares unlocked, and .

Volume in trading of Twitter stock is already a massive 65 million shares. Normal volume for Twitter is around 13 million. It’s barely noon here on the East Coast.

Twitter, , has around 569 million shares outstanding (that figure doesn’t include un-exercised options and un-vested RSUs). Twitter founders and an early investor . Only a fraction of the 465 million shares that unlocked today have traded hands.

The company has had a precipitous drop from earlier heights before user growth became a key concern. Twitter shares topped $74 after debuting around $45 per share after being priced at a modest $26. Twitter is therefore still up from its IPO price, but not much.

The company , and with today’s fresh shellacking, Twitter has experienced a string of days where it fell double-percentage digits in quick order. There have been some updrafts as well.

All told, what Twitter hoped wouldn’t happen did. Insiders cashed out, and its stock fell.


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