The stock price of Twitter fell by around 7% on Monday. This was seen as a reaction to the ban imposed on president Donald Trump’s Twitter account.
During the initial session, the stock plunged as much as 12 % but soon recovered to close around $48.00. When Twitter banned the account of Trump, the account had more than 88 million followers.
Twitter Stock Plunges After Banning Trump
Soon after the US Capitol riots, twitter had temporarily suspended the account of Donald Trump alleging that he had posted provoking messages that incited his followers to attack the US Capitol. Twitter had asked the President to remove the tweets in order to access the account in future. Even though the team of Trump deleted the account and got the access on the next day, it was short-lived as twitter decided to permanently block the account for security reasons.
Twitter had said that Trump is likely to use the platform to instigate further violence across the country in the next few days. Considering the situation, the social networking platform decided to ban the account of Donald Trump in order to stop the spread of violence across the country.
This move by Twitter was severely criticized by many people and the business of Twitter is likely to get affected in the near future with this decision. Several supporters of Trump and right-wing activists pledged to Boycott Twitter in the near future. The effect was visible soon after the markets opened on Monday and Twitter suffered a huge loss that was usually not visible in the recent months.
Twitter defended the actions and said that several messages were floating on the platform with regards to armed protests and another attack on the US Capitol on January 17th. Considering all these threats, the social networking platform decided to to ban the accounts of Trump and several of his supporters in order to to stop the usage of social media platforms to organise violent riots across the country.
Several market analysts are of the opinion that Twitter lacks a proper moderation team and they should seriously work in this regard if they have to survive for a longer run in the market. On the other hand, facebook employs a moderation team that is around 6 times larger than the workforce of Twitter.
Twitter is also facing troubles with regards to the proposed plans to revoke section 230 by both the parties. As the control of the Senate is now with democrats, it is likely that Twitter and other social networking platforms may come under radar for the recent actions during the US Presidential elections.
Both republicans and democrats now believe that the Tech Giants have become too big and Powerful enough to interfere in elections and other national issues. The administration obviously does not want such interference from the Tech companies and revoking Section 230 is the best way to control such social media platforms in the near future.
Market experts are of the opinion that even though the governments may not be able to remove Section 230 completely, they may be able to remove certain important protections offered by Section 230 that would make the social media companies more responsible for the content they post on their platform.
Apart from Twitter, other tech companies like Google and Facebook also faced a lot of Criticism from several people with regards to their interference in political issues. Many people feel that the big companies are now moderating content in a big way and users are not able to get access to the correct information. This is likely to affect the business of big tech companies in the next few months according to market experts.