Boston, MA 05\/06\/2014 (wallstreetpr) \u2013 Even as the second and final lockup on insider-owned shares in Twitter Inc (NYSE:TWTR)<\/b> expired last night, Twitter faces more than just the challenge of an additional 480 million shares suddenly flooding the market and dragging stock prices lower.<\/p>\n
In early trading, Twitter stock did go down by more than 10% even though top management has already said that they will hold on to their shares. Neither of the co-founders Jack Dorsey and Evan Williams are selling their shares nor will CEO Dick Costolo. That should bring some stability to Twitter\u2019s share price. This is more or less standard practice for any tech company founder and\/or CEO. It\u2019s only expected that Steve Jobs would hold on to his Apple Inc. (NASDAQ:AAPL)<\/b> stock or Bill Gates would not sell his Microsoft Corporation (NASDAQ:MSFT)<\/b> shares. For younger tech companies that went publicly just recently, Facebook Inc (NASDAQ:FB)<\/b> is a case in point where its CEO and founder Mark Zuckerberg had declared months after the stock\u2019s May 2012 IPO that he won\u2019t be selling any Facebook stock.<\/p>\n
Falling Tech Stocks<\/b><\/p>\n
It\u2019s noteworthy that Twitter Inc (NYSE:TWTR)\u2019s share price has declined by 43.51% so far this year \u2014 although Twitter is still trading higher than its IPO price of $26. This could not have been caused simply by the expiry of the lockup.<\/p>\n
Twitter\u2019s falling stock prices can be seen in the light of disappointing results in the recently released 2Q2014 results. To be sure, Twitter\u2019s numbers were not bad in themselves \u2014 it is just that they failed to meet the stratospheric expectations from the investors. Revenues doubled in 1Q2014 to reach $250 million compared to 1Q2013. Twitter of course still remains a loss-making company and reported a net loss amount of $132.4 million in the just-ended quarter as compared to a loss of $27 million in 1Q2013.<\/p>\n
Twitter Inc (NYSE:TWTR)\u2019s full year revenue expectations for FY2014 are between $1.2 billion to $1.25 billion.<\/p>\n
Another darling of tech investors \u2014 LinkedIn Corp (NYSE:LNKD)<\/b> \u2014 seems to be in the same boat as Twitter. Its stock price too has tumbled by more than 30% since the beginning of the year even though it is posting record profits and showing good growth.<\/p>\n","protected":false},"excerpt":{"rendered":"
Boston, MA 05\/06\/2014 (wallstreetpr) \u2013 Even as the second and final lockup on insider-owned shares in Twitter Inc (NYSE:TWTR) expired last night, Twitter faces more […]<\/p>\n","protected":false},"author":32,"featured_media":14705,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[263],"tags":[1747,2079,1637,813,738,815,4079,4078],"stock_ticker":[],"class_list":["post-21353","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-technology","tag-facebook-inc-nasdaqfb","tag-linkedin-corp-nyselnkd","tag-microsoft-corporation-nasdaqmsft","tag-nasdaqfb","tag-nasdaqmsft","tag-nyselnkd","tag-nysetwtr","tag-twitter-inc-nysetwtr","entry"],"acf":[],"yoast_head":"\n