TWTR is down more than 15%! today because its lock up period expired. If that makes sense to you, well then, you are a very intelligent martian–because you’re not from this planet. Stocks don’t trade down 15% because their respective lock up periods expire. That’s patently absurd. This isn’t an illiquid stock or even an up stock for that matter. Quite frankly, the computers have gone mad, selling everything remotely related to high multiple technology–grinding them into the ether.
Look at CRTO. The computers must be confused with this one, trading at a touch over 3x sales. They just smashed earnings and guided higher with a BIG beat on the top line. Early going, the stock had climbed 10%. Now it’s down 5% and rapidly taking on water.
Inside of The PPT, I built a bubble basket of my own. It’s down 3% for the day, led by losers such as FLDM, TWTR, YELP, ATHM, FEYE, PLUG, RUBI, MKTO, ECOM etc. It’s just more of the same, relentless selling into a black sea of uncertainty.
This is what I do know, however: these stocks are the plague. They should be avoided at all times. In the case of CRTO, I insist this isn’t a bubble stock and its shares should rebound shortly. As for everything else, falling by the wayside, I offer you a eulogy in 140 characters:
The bubble was great fun. It was invigorating and we all got to experience the essence of youth, to be gratuitously rich, careless–perfect.
-Fly, May, 2014