Twitter stock goes down 3% after red-hot IPO

Twitter's IPO with shares closing 73 percent higher than the set range sent the company's valuation soaring to 24.4 billion dollars, however, after the first day frenzy, the microblogging site's shares sank down by 3 percent.

Twitter started trading its stocks under the New York Stock Exchange reaching 50 dollar per share mark before closing at 44.90 dollars, still higher than the proposed limit. But on the second day of trading the shares went down, CNN reports.

Analysts have opined that the company's current valuation 'defies reality' and 45 dollar per share price would be justified only if Twitter could log more than 6 billion dollars in annual sales by 2018.

The 140-character short status site hasn't seen profit in its six year long existence on the social networking front and expecting it to meet expectations at every quarterly earnings is but 'overly optimistic'.