December 30, 2013
The drop in shares of Twitter Inc. accelerated near the close of trading Friday, with its stock dropping more than 10%.
Update: Twitter's stock closed down 13%, wiping away more than $5 billion in the company's market capitalization.
As of Thursday's close, after clocking five consecutive days of gains, Twitter's market cap hit nearly $40 billion. By Friday it was around $34.2 billion.
Putting Twitter's drop in perspective, its market cap decline on Friday is a little less than twice J.C. Penney's $2.7 billion total market value.
Trading volume in Twitter shares-a sign of interest in the stock-has surged in recent days, with more than 60 million shares changing hands on Friday. That amounted to more than three times the stock's 30-day average trading volume, according to FactSet. On Thursday, 82 million shares were traded.
As WSJ reported, with a valuation of nearly $40 billionat the close of trading Thursday, Twitter topped Target Corp.'s $39.5 billion market value and Time Warner Cable Inc.'s $37.6 billion market cap, according to FactSet.
As many analysts have noted recently, even at its current valuation, Twitter is still seen as pricey for a company that isn't expected to be profitable for several years.
Twitter shares are still up more than 150% from the $26 IPO price. - Reuters
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