Twitter Share – Downfall
Twitter never would have thought that permanently banning President Donald Trump from their platform would result in a fall of Twitter shares, as reported on this Monday.
On Friday Twitter joins a growing list of companies that have started to distance themselves from the outgoing president of the USA that is Trump. This isolation of Trump from the social media platform is due to the deadly attack at the Capitol last week in which president supporters were involved. Many people in the mob believed that the election was stolen from President Trump.
This certain negative surge in the Twitter share may have a financial perspective as many investors believe that banning Trump could affect Twitter because some former followers of his feeds may decide to leave the platform. And these people would decide so because they would think that company is silencing the voices of Conservatives. And another reason investor is pulling back their investment is that before Trump’s ban, many advertisers had made their mind to avoid sponsoring contents on a platform that has become polarizing.
Total shares of Twitter fell by nearly 10% by early Monday but it paired up to cover up some losses and trading down 6% by noon.
Democrats Putting Pressure
Social media platforms may have come under the influence or pressure coming from the administration of Democrats and Biden, who are supposed to take control of the House and Senate. Further pressure may be put on such social media platforms to bring down certain comments or tweets posted by politicians and other verified account holders.
Even though Twitter shares faced a big drop on Monday, but Twitter is still up about 45% as compared to 12 months back. This percentage number is greater than the returns of Facebook (20% rise during the same period).
Some investors are happy with the healthy jump by Twitter in earnings for the 3rd quarter, but some are worried about the slow user growth on the platform. However, this impact may not affect users’ preferred platform to share the breaking news or any kind of commentary.
Signal App – Stock Rise
If we recall a conference call with the analyst of Twitter CEO Jack Dorsey in October, he stated that it is an opportunity to show people Twitter is not only for news and politics but it is much more. he also added bad people are coming for one reason and are holding back because they find relevant topics that are in fact of interest to the user.
This tweet led to a rise in the shares of a health tech company name Signal Advance SIGL (which is not the owner of the signal app). The share rose by 525% on Thursday and further advanced by 400% on Monday as noted by Deutsche Bank.
[…] Twitter Share Fall after Banning Trump from Platform […]
[…] Donald Trump was banned from most social media platforms in January, including Facebook, Twitter, Instagram, YouTube, and Snapchat, following claims that suggested his involvement in the January 6 riot at the US Capitol building in Washington, DC that left five people dead. […]