Hard for shorts to get this down too much with longs holding on for higher prices and so many insider shares locked up until May 2014.
Their timing might have been off and they could have got in much cheaper like myself at $41, but I doubt when they bought at those high prices, it was not to sell at $50-$52 lol. So many want this to pull back to give them a second chance.
Unlike in other recent initial public offerings such as Facebook, where some early investors sold shares right away and officers could start dumping in just three months after the deal, Twitter insiders will need to hold on for a longer period of time.
Some rank-and-file employees can sell 9.9 million shares starting Feb. 15, 2014, to cover income tax expenses from vesting shares. But that's just 1% of the company's shares outstanding. More important, executives, directors and owners of large chunks of Twitter stock have agreed to not sell their shares for at least 181 days after the IPO. That means these shares are locked up for sale until May 6, 2014, saving early investors from this avalanche of supply of stock. The 181-day lockup is a relief to investors, since the release of shares for sale can apply significant pressure on a fledgling stock.
Shorts will get squeezed hard with all this buying.
Buy both. But if you buy TWTR right now, then just buy 1/2 of what you want, the rest if it pulls back. TWTR stock price will go much higher than FB's due to the float comparison. Also, the higher FB goes, the more potential investors see for TWTR. It's a no brainer.
Social media hot
I told you shorts that when they starting letting you borrow those short shares, don't do it. The buying pressure is causing a massive squeeze on you.
Agreed. I'm still in both. Obviously TWTR will run much faster because of the float comparison. I was just posting on the TWTR board to consider what the price of FB would be with a market cap of $160B and where TWTR price would be at with a market cap of $80B. FB currently at 123B and TWTR at 28B
Lot of short squeezing to do.
This is the reason why people are buying this stock like crazy. Not to mention FB going higher.
Actually the price depends on what someone is willing to pay for them, period. Just look at TWTR. Yes, buy many metrics, extremely over valued, but I'm making huge profits from buying the stock at $41 and calls from that level as well. People will start to get nervous if it gets too high though, but for now, go baby go. So, NFLX can go as high as the market wants it to go, and shorts will still be crying about it.