Twitter's Stock Drop on Monday Was the Worst of Major Tech Firms

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Traders and journalists crowd the trading floor of the New York Stock Exchange on the morning of Twitter's public stock debut on Nov. 7, 2013.

Image: New York Stock Exchange/Associated Press

By Alex Magdaleno2014-05-08 16:15:19 -0500

After Twitter stock dropped 10 percent in early trading on Tuesday morning, the company's stock continued to fall almost 18% in the wake of the lockup period's end.

At an all-time low of less than $32 a share, the drop in Twitter stock when compared to other companies like Facebook, Yelp and Google could spell more bad news for the company.

See also: Twitter Is Not Doomed

When a company first goes public, early investors cannot sell their shares for a set amount of time, known as a lockup period. When the lockup period ends, those investors typically sell their shares to cash in on their investments, usually resulting in a company's stocks falling, like Twitter has seen when its lockup period ended on Monday.

While it's typical for companies to see a dip in stock prices, Twitter's seems to be more significant than Google's 6.7% drop and Facebook's 12.6% gain — a surprise by many in November 2012 when most experts expected Facebook's stock to nose dive.

The following chart, created by Statista, further details how Twitter's stock prices post-lockup compare to other companies:

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Topics: chart of the day, Facebook, new york stock exchange, Social Media, stock, Twitter