Twitter Reverses Rally as Shares Dive
Twitter Inc.’s rally came to an abrupt halt on Friday.
Shares of the microblogging site tumbled $9.56, or 13 percent, to $63.75, taking a dent out of the big gains that accumulated since the San Francisco company’s initial public offering in early November. The drop wiped away about $5.2 billion in Twitter’s market capitalization, or a little less than twice that of J.C. Penney Co.
An analyst downgrade and worries about the stock’s valuation ignited Friday’s drop, burning many of the investors who had piled into the stock in recent days.