Hard fall in Twitter share price

<p>The share price of Twitter fell badly yesterday.</p>

The share price of Twitter fell heavily on Wall Street yesterday (May 6th) as investors continued to appear unconvinced over the future direction of the technology company.

Stocks in the firm dropped by ten per cent when the New York Stock Exchange opened and by the end of the session, they were down 17.81 per cent, with a further 0.41 per cent dip in after-hours trading in the US.

The severe drop in the value of the company coincided with the end of the lockup period that prevented Twitter's executives, early investors and other insiders from selling up to $20 billion (£12 billion) in stock.

"This is clearly lockup related," new-media analyst Brian Wieser at Pivotal Research Group told the Guardian. "Not every investor will refrain from selling, many of which include early employees of the company who may well want to take money off the table.

"Even if they don't sell, the fear among investors will cause selling. The market is either experiencing heightened selling or anticipating it."

Twitter's share sale took place last November and was one of the largest in recent years.

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