Investing
Twitter shares drop below $40 for first time since float
Twitter shares have dropped below $40 on Monday for the first time since they were listed listed last week, as investors began to take profits.
The social media site experienced phenomenal success at IPO, with the share price jumping 90% from $26 to $50.09 immediately after listing.
However, the share price dropped below the $40 mark today, before recovering again to trade at $42, as investors moved to take profits from the holding.
Twitter made a total of 70 million shares available in the largest technology IPO since Facebook’s, and the offer was 30 times oversubscribed.
Facebook’s IPO in May last year was initially a disaster in comparison.
Its share price plunged from $38 to $18 as investors worried about how the group could monetise its success.
However, the shares later recovered, after a major push to promote Facebook’s credentials to advertisers, and are currently trading at $47.
