Twilio Under Pressure After Lock-Up Expiration Looms

Twilio Inc TWLO shares were trading lower by $1.00 (3 percent) at $31.81 in Friday's session.

The issue has been in limbo over the last two sessions as 67 million shares were unlocked for sale on the open market. The issue added $1.37 on Thursday, but has relinquished some of those gains in today's session.

With short interest at 29 percent, many are banking on a good portion of those outstanding shares to be dumped on the market resulting in lower prices. On many occasions, traders will dump large positions in anticipation of reaping profits as the lock-up period expires.

However, there's no guarantee that even one share will be sold at these depressed levels and some shorts are not sticking around to find out. Both Wednesday's and Thursday's volume reached nearly 10 million shares, which is well above the its 20-day average volume of 4.7 million.

The heavy volume continued in today's session as 7.3 million shares have already traded with over three hours remaining in the session.