Twitter, Facebook Take a Hit in the Market After Trump Ban

The main social media platforms sank after banning the outgoing president's accounts.
CapitalWatch StaffJan 11,2021,21:58

Shares in Twitter Inc. (NYSE: TWTR) tumbled Monday after an unprecedented permanent booting of outgoing U.S. President Donald Trump.

If Telegram had been a public company, its stock would have jumped today as Trump seeks a new social medium to incite his supporters and move the markets. On Friday evening, after a 12-hour suspension, Twitter shut down the president’s account and followed with a deletion of its history. Gone are the days when the world could be moved by the sometimes impulsive, irrational, contradictory, and shocking statements by the No. 1 political figure in the United States.

Still No. 1, until a possible second impeachment or the inauguration of Joe Biden on Jan. 20.

The ban of Trump by his social platform of choice, which he used ceaselessly despite constant bickering with the company, came after a violent insurrection at the U.S. Capitol by his supporters last week, whom he incited via Twitter and Facebook. The siege resulted in four deaths and shook up the nation and its confidence in a democracy, with U.S. House Speaker Nancy Pelosi calling the president “an imminent threat” in a letter urging Trump’s removal from office.

Now, Twitter trades down 6%, at $48.23 per share, after losing as much as $5 billion in market value in early trading. Facebook Inc. (Nasdaq: FB), which also banned Trump indefinitely, slid nearly 4% in the afternoon to $257.64 per share, down $33.6 billion in market capitalization. CEO Mark Zuckerberg said on Thursday that the risks of Trump using the social platform “are simply too great.”

Earlier, YouTube removed Trump’s video in which he urged rioters to “go home in peace” while disputing the election results. Among others, Snapchat (NYSE: SNAP) and livestreaming platform Twitch have frozen the president’s account, and Shopify (NYSE: SHOP) removed his online stores.

Now, after the violence at the Capitol Building last week, the theme of President-elect Biden “America United” seems to swell in proportion. By Monday, 20 federal criminal defendants involved in the protest have been arrested, accused of carrying weapons and bombs, as well as ransacking the Capitol, as CNN reports. As investigations continue, it is left for the public of the United States to hope for an end to violence and look forward to unity.

Topics:twitter, facebook, trump, capitol, impeachment, pelosi