Twitter, Facebook lose billions of dollars in market value after Trump ban

Shares of social media companies has taken a hit following the ban on US President Donald Trump.

According Business Insider, Twitter stock fell as much as 12% on Monday after the microbogging platform permanently suspended Trump's account on Friday evening. 

The share-price decline wiped $5 billion from Twitter's market capitalization.

Twitter suspended Trump's account, which had about 88 million followers, after his supporters stormed Capitol Hill last week.

The President was accused of inciting violence by fanning conspiracy theories about voter fraud and election theft.

Trump generated enormous publicity for Twitter with his mostly controversial tweets over the past six years.

Report said Twitter stock likely fell because investors are worried the Trump ban will erode interest in the platform and lead to boycotts among those who see the decision as politically motivated and a way to silence a major conservative voice.

Investors also fear that because Trump is such a prominent figure on Twitter, the platform may see a large chunk of engagement disappear with him.

His tweets were often widely shared and frequently went viral. It also reached beyond the platform as they were often discussed on TV news and other websites.

Shares in Facebook, which suspended Trump’s account indefinitely, ended Monday down 4 per cent.

The slide saw $33.6 billion erased from Facebook's market cap at intraday lows. 

Investors likely fear that the ban will lead pro-Trump users to boycott the website and congregate elsewhere.

Facebook CEO Mark Zuckerberg defended the decision in a post, arguing that Trump appeared intent on using his account to undermine a peaceful transition of power and risked sparking more violence.

Trump had said that he would be “building out our own platform in the near future. We will not be SILENCED!”

Right-wing social-media platform Parler was poised to take in right wing users until Amazon removed the website from its hosting service.

Shares of Apple, Amazon, and Alphabet, parent company of Google, all shed more than 2 per cent on Monday.

Trump supporters have argued that the actions of the technology companies is a violation of free speech and Trump has long tried to repeal Section 230.

Though Trump's tenure ends in few days, power in the Senate has flipped to the Democrats who have long begrudged the oversized influence of social media.

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