From a financial standpoint, investors may believe that Trump’s ban would hurt Twitter as some feeding fans may decide to leave the platform because they believe the company toasting reservation voices. The fact is that even before Trump banned it, advertisers may have decided that they want to avoid supporting content on a platform that has become polar.
Twitter shares fell as much as nearly 10% early Monday before losing some losses and trading down 6% by noon.
In addition, Twitter and other social media companies may come under increased pressure from the Biden administration and the Democrats who will soon take control of the House and Senate. They may be trying to further break down the more interesting content on the platform, not to mention the lies tweeted by politicians and keepers of authentic accounts other.
Even after the big drop on Monday, however, Twitter shares are still up about 45% over the past 12 months. That is a greater return than Facebook’s (Fb) 20% profit in the same period – although it allows the increase of more than 200% for Snapchat owner Snap (SNAP).
Twitter reported a healthy jump in earnings for the third quarter but investors are concerned about slower growth in user growth. And the platform is still the preferred way for many users to share breaking news and report.
“I think we have an opportunity to show people a wider side of Twitter than just what they see with news and politics,” Twitter CEO Jack Dorsey said during a conference call with analysts in October .
“People come for a reason and stay because they find relevant topics that interest them,” Dorsey said.
Many Twitter users have attracted a huge following, and their tweets just don’t deserve news. They can also move markets.
Case in point:
Tesla (TSLA) CEO Elon Musk, who has nearly 42 million followers, helped blow up a huge rally in a tiny stock last week when he just
tweet “Use Signal,” authentication of the encrypted messaging service.
Shares of health tech company named Gain of signals (SIGL), which is No app owner Signal, rose more than 525% Thursday after a Musk tweet. It almost doubled again on Friday and rose 400% another Monday after a Deutsche Bank strategist noted the rise in a report.
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