Twitter Continues To Tumble

Joel Elconin is the co-host of Benzinga's #PreMarket Prep, a daily trading idea radio show.

Twitter Inc TWTR shares were trading lower by $0.47 (2 percent) at $27.07 in Friday's session. This marks the fourth session in the last five in which the issue has cascaded to a new all-time low. However, in three of those occasions the new low was made by a substantial amount. In Friday's session, it has made a new low by $0.20 at $27.03 with over three hours remaining in the trading day.

Also, this is the third consecutive session in which the issue has opened within a dime of its high for the day and retreated. Off today's open, a modest buy imbalance induced a higher open ($27.80 vs. Thursday's close of $27.54), but it could only rally another dime to $27.90 before sharply reversing course.

Interestingly, Twitter is now within $1 of its original IPO pricing that was set at $26 in November 2013. It ended up opening at $45.10 and raced to $74.73 the following month, but has been on a rollercoaster ever since. Despite beating Wall Street estimates in five of the six quarters it has reported, the share price has not responded in kind.