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 Facebook spiked more than 10 percent.
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, according to Google Finance, has around 569 million shares outstanding (that figure doesn’t include un-exercised options and un-vested RSUs). Twitter founders and an early investor pledged to not sell their shares. 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 dove following both of its debut earnings reports, 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.
ILLUSTRATION BY BRYCE DURBIN