Twitter Suffers Sell-Off as Lock-Up Expires

from
,

When a company goes public, early investors and company insiders are usually forbidden to sell their shares for a predetermined amount of time. When this so called lock-up period, usually 90 to 180 days long, expires and trading restrictions are removed, stocks typically fall as early investors are keen to cash in on their investments.

The latest company to suffer such a sell-off is Twitter. On Tuesday, the company's lock-up period expired and despite prior claims of major shareholders not to sell, the company's stock price dropped like a rock during Tuesday's trading. At the end of the day, the stock had slipped almost 18% to close at an all-time low of $31.85.

No rule comes without exceptions though: In November 2012, when millions of Facebook shares became eligible for trading, many had expected the stock to take a nose dive after its rocky start to public trading. In the end the opposite happened: Facebook's shares climbed 12.6%, marking the starting point of a rally that saw Facebook double its value within the next 12 months.



Infographic: Twitter Suffers Sell-Off as Lock-Up Expires | Statista
Related Infographics
  • Social Media Marketing
    Facebook Dwarfs Competition in Terms of Referral Traffic

    This chart shows the percentage of traffic to a large sample of websites that comes social media websites.

  • Twitter
    Twitter Fails to Reignite User Growth

    This chart illustrates Twitter's user growth since 2010.

  • Social Networks
    Twitter Versus Facebook

    This chart shows how Facebook and Twitter measure up in numbers.

  • Twitter
    Why Social Media Managers Shouldn't Rest On Sundays

    This chart shows how many times brands' tweets are retweeted on average on different days of the week.

  • IPOs
    Alibaba Pops 38% in Public Trading Debut

    This chart shows how Alibaba's first day as a public company compares to the stock market debuts of other internet companies.

More info on this topic
Twitter statistics
Twitter statistics
Twitter
You may also be interested in...
Infographic Newsletter

Statista offers daily infographics about trending topics covering Media and Society.

Download & Reference

More statistics about...
Show more
FAQ
Who may use the "Chart of the Day"?
The Statista "Chart of the Day", made available under the Creative Commons License CC BY-ND 3.0, may be used and displayed without charge by all commercial and non-commercial websites. Use is, however, only permitted with proper attribution to Statista.

Which topics are covered by the "Chart of the Day"?
The Statista "Chart of the Day" currently focuses on two sectors: "Media and Technology", updated daily and featuring the latest statistics from the media, internet, telecommunications and consumer electronics industries; and "Economy and Society", , which inlcudes current data from the United States and around the world relating to economic and political issues as well as sports and entertainment.

Can Statista create customized charts?
Absolutely! For information on tailor-made and sector-specific Charts of the Day, please contact Jan Ahrens
(jan.ahrens@statista.com).