Twitter Insiders Get Out. Investors See Stock Falling to $30 or Below: StockTwits.com

NEW YORK (TheStreet) -- Turns out Twitter  (TWTR) insiders wanted out. Twitter opened 7% lower Tuesday morning after selling-restrictions expired on 480 million shares granted to company employees and pre-IPO investors.

$TWTR An old Water hose works fine until u turn ip the pressure then it bursts-489.000.000 shares is a lot pressure-
? Daniel Harris (@MYBOYFRESH) May. 6 at 09:03 AM

$TWTR Smoked pre market. There's no one who can absorb the type of supply being dumped right now. How was anyone bullish on this yesterday?

? Gh0stTrade515 (@Gh0stTrade515) May. 6 at 08:52 AM
The so called "lockup expiration" was long forecast and a majority of investors on StockTwits.com had warned that many insiders would likely choose to sell a significant portion of their holdings -- even if Twitter's cofounders, CEO and other large stakeholders did not sell a single share, as promised.

StockTwits' users saw -- and still see -- three reasons for Twitter's fall. Twitter trades at more than 155X expected 2015 earnings, a higher multiple than other social networks such as Facebook  (FB) and LinkedIn  (LNKD). Twitter's multiple is particularly high given its declining user growth. That's one reason Barron's recently called the stock overvalued.

$TWTR is showing her true colors in bright shades of RED but for many, no big surprise. Blood letting programs hitting the bid.

? JMar (@Sliver) May. 6 at 08:55 AM

Also, Twitter insiders have watched their paper worth deteriorate by about 47% since February, when the stock hit an all-time-high of $74.73. So it's understandable why some insiders would want to lock in profits rather than risk their whole stake losing more value in the near term.

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