- Together, Facebook and Twitter have seen $ 51.2 billion removed from market restraints in the last two trading sessions, while investors don’t understand President Trump’s ban.
- Facebook removed $ 47.6 billion from its public rating, while Twitter’s market cap fell $ 3.5 billion.
- Both companies announced last week that they would ban the president once and for all, saying keeping them on their platforms posed too great a risk of further violence.
- The bans come when Trump opposes government and corporate involvement over his role in inciting violent riots at the Capitol last week.
- Watch Facebook commerce live.
- Watch live Twitter commerce.
Facebook and Twitter, the two largest social media platforms that permanently banned President Donald Trump for his role in last week’s capitol riots, have canceled a total of $ 51.2 billion in the last two trading sessions.
Cross-sectoral companies have responded to the president’s rhetoric in recent days by suspending political donations, making statements despising their inflammatory remarks, and pulling up products related to right-wing movements. Facebook and Twitter probably took the most retaliatory steps when they banned Trump from their platforms indefinitely on Thursday and Friday, respectively.
Both companies mentioned the risk of further violence because of their bans, but investors largely protested the action. Facebook fell 4% on Monday and another 2.2% on Tuesday as shareholders dropped shares, likely fearing the ban could drive users off the platform. By the time markets closed on Tuesday, Facebook’s market cap was $ 47.6 billion lower than Friday’s level.
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Twitter fell 6.4% to the start of the week and another 2.4% as sales continued until Tuesday’s close. Due to the decline, Twitter’s market cap fell by $ 3.5 billion.
To be sure, Twitter rose 2.9% on Wednesday, while Facebook fluctuated at its previous closing level. And analysts, after the bans, did not lower the median stock price targets, indicating that the slides are likely knee-jerk reactions that will reverse over time.
Other technology giants responding to last week’s uprising performed better this week. Both Apple and Google have risen slightly since it announced after Friday’s closure that they will remove the right-wing Parler social network from their app stores. Amazon shares rose 1.6% since it was announced on Sunday that it had fired Parler from its web hosting service.
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Nevertheless, technical companies may return in the last week of Trump’s presidency. CNN reported Monday that Trump could retaliate against the technology giants for banning them. It is not yet clear what the president’s action would look like and whether it would materialize before the inauguration of the elected president, Joe Biden.
Facebook traded at $ 251.70 per share at 10:25 a.m. Wednesday, down roughly 8% from previous data.
Twitter’s share price was $ 47.94, down 12% year-over-year.
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