Twitter tumbles after warning on overvaluation
NEW YORK (AFP) - Twitter shares tumbled on Friday after a brokerage analyst warned the popular messaging network was overvalued following a meteoric rise since its initial public offering in November.
Twitter shares closed down 12.99 per cent at US$63.79 (S$80.82). But the stock has more than doubled from its offering price at US$26 on November 7.
Mr Jon Ogg at 24/7 Wall Street said Friday's decline followed a five percent gain on Thursday which put Twitter at a record high of US$73.31.
"Twitter's stock valuation has been difficult or impossible for Wall Street analysts to deal with," Mr Ogg said in a blog post.