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Twitter Plunges as Lockup Ends, Social-Media Stocks Drop

Twitter Inc. plunged to a record low after lifting restrictions on share sales by insiders and early investors, renewing concerns that Internet stocks are overvalued and sparking a selloff in social-media companies.

The stock slumped 18 percent to $31.85 at yesterday’s close in New York as about 480 million shares from insiders became eligible for sale on May 5, more than quadrupling the current amount available for trading. They declined even as early investors Chris Sacca and Rizvi Traverse Management LLC pledged not to sell, declaring confidence in the San Francisco-based company.