Twitter stock fell in first trading day after Trump ban

Twitter has permanently suspended Donald Trump’s Twitter account.

Jakub Porzi | Nurphoto | Getty Images

Twitter shares plunged more than 8% on Monday in the first trading session since the social media company permanently suspended President Donald Trump’s account.

Twitter said that late Friday night it decided to remove the president after the deadly riots in the US Capitol “because of the risk of further inciting violence”.

According to analyst notes, the move could lead to re-enactment of the law to repeal Section 230. Trump has loudly voiced his disdain for Section 230, and some politicians in both parties have complained about it.

Analysts at Bofo Securities said in a note, “Although a Democratic administration may be less focused on the significant reform of Section 230, recent developments may make content law more likely.” Nevertheless, the firm reiterated its buy rating on the stock.

Analysts wrote, “We will anticipate new proposed legislation in Congress on social media content given recent events, but note concerns are not new and we think the new laws provide better guidelines and less uncertainty to social media companies will do.”

Bernstein analysts said in Sunday’s note, “Can we expect more regulatory activity? It’s possible.”

Meanwhile, other social media companies also traded less after taking action against Trump. Facebook, which extended the initial 24-hour suspension indefinitely, was down about 2%. Snap and Pinterest each traded around 1% less.

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