This is going to be a turbulent flight.
In its second day of trading, Twitter fell more than 7 percent after the microblogging service soared in its market debut. The stock fell $3.25, or 7 percent, to $41.65 on Friday despite an uptick in the broader market.
Friday’s plunge marks a 20 percent drop from Twitter’s intraday high of $50 a share on Thursday.
Twitter went public with its shares skyrocketing 73 percent, to close at $44.90. The San Francisco-based social network priced its IPO at $26.
The first day’s close gave the money-losing site a market value of almost $25 billion, making it worth more than established companies like Coach and Whole Foods.
After the euphoria wore off, Wall Street showed more skepticism about the lofty valuation, with many suggesting that a stock in the $30s and low $40s makes more sense.
Brian Wieser of Pivotal Research Group immediately downgraded the stock to a “sell” rating, saying it was just too expensive.
On Friday, Wedbush analyst Michael Pachter set a neutral rating with a $37 price target. While he cited the potential for growth, he also said it’s too early to value the fledgling company.