This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Twitter Insider Selling May Crush the Stock: StockTwits

NEW YORK (TheStreet) -- When the lock breaks, Twitter (TWTR - Get Report) could become unhinged.

Investors on prepared for the worst ahead of Tuesday's share lockup expiration. Starting tomorrow, Twitter insiders will be able to sell 480 million shares that were previously restricted.

The amount of shares that will be eligible for sale dwarfs the 80 million shares investment banks sold to the public in the IPO. As a result, if many insiders sell tomorrow, Twitter's share price could plummet.

The stock climbed half-a-percent by 3 p.m. Monday. The rise was, in part, due to enthusiasm over a deal between Twitter and Amazon (AMZN) to enable Twitter users to add items to their Amazon cart, for purchase later, without leaving Twitter. Sentiment on the stock, however, is 52% bearish, according to StockTwits analytics.

@HeadandShoulders ... Don't read anything into today's activity. Everybody is holding their breathe and WAITING TO EXHALE tomorrow

-- George (@gmfischer71) May. 5 at 01:28 PM

The way a majority of Twitter commenters sees it, shares of the micro-blogging social network are heading lower. What remains to be seen is if shares fall abruptly due to rampant selling or slowly over the next few weeks.

$TWTR...expecting a dribble lower & lower in coming weeks. Cause will be dismissed as "markets are weak". All bs as insiders sell sell sell.

-- Morpheus (@Morpheus) May. 5 at 02:43 PM

Twitter's biggest shareholders have said they will not sell tomorrow. Twitter co-founders Jack Dorsey and Evan Williams, along with CEO Richard Costolo, have no plans to sell common stock, according to an April 14 regulatory filing. Benchmark Venture Capital Funds also does not plan to sell or distribute stock after the lock expires. The group holds more than 205 million shares.

However, investors predict that many other funds and employees will sell.

$TWTR Like FB ipo, there's multiple pvt equity firms that own TWTR in the single digits. Are THEY on board with Costolo's no sell.? (no)

-- jim mckee (@DanDaMan) May. 5 at 01:49 PM

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
TWTR $14.62 0.00%
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs