28 February 2024

Twitter Breaks Its IPO Price

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So much for that brief Twitter Inc. rally. The micro-blogging site dropped below its initial public offering price for the first time ever Thursday. By late afternoon, Twitter shares hit an intraday low of $25.92 – just below its $26 2013 IPO price. The stock closed exactly at $26.

Last week, several Twitter insiders, including interim CEO Jack Dorsey, revealed that they had bumped up their stakes in the social-networking company, which sparked a rally of nearly 10% in the company’s stock. All of that has been lost — and then some.

One analyst looks particularly prescient Thursday. Trip Chowdhry, a managing director at Global Equities Research, wrote in a research note on the day of the Aug. 10 rally: Sell now. On Thursday, Mr. Chowdhry said his stance hasn’t changed, and he still expects the company’s shares to fall between $15 to $18. Twitter’s stock is down nearly 28% this year (including Thursday’s drop) and is also down nearly 28% since Dick Costolo, Twitter’s former CEO, announced his resignation in mid June.

Twitter is part of a growing club of companies in a wide range of industries that have gone public in the past several years — only to fall below their IPO price. Among them: LendingClub Corp., David’s Tea Inc., and Etsy Inc.

Click here to access the full article on The Wall Street Journal.

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