Twitter Shares Fall In Auction

According to a tweet from Paul Kedrosky, shares of Twitter fell to $32 from $34.50 in a share sale on a private exchange. Kedrosky is the author of the famous blog, "Infectious Greed", and is a contributor to Bloomberg as well. Earlier in the week, Warren Buffett said that most social media shares were "overpriced," and perhaps this is the beginning of the bubble bursting. “Most of them will be overpriced,” the Berkshire Hathaway BRK chairman and CEO was quoted as saying. “It's extremely difficult to value social networking site companies.” Buffett did say that there would be some winners, which would overshadow the losers, but having shares of Twitter fall is a shock, as Twitter is expected to be one of the major winners in the social networking space. Barry Diller, chairman of IAC Interactive IACI has said that valuations of these companies were "mathematically insane." Perhaps he and Buffett are right. Only time will tell, but if this latest auction is any precedent, then we may be seeing the bubble bursting right before our very eyes.