Twitter's share dropped 12 percent on Monday following the social media giant's permanent suspension of President Donald Trump and a series of other conservatives.
Twitter Shares Drop After Trump Suspension
Shares were diminished after the market opened on Monday, reaching a drop of $45.17. Twitter shares closed at $51.48 on January 8.
Twitter shares slid 7.4% in pre-market trade on Monday. Facebook's shares also slipped by 1.5%.
According to Twitter in a statement, "after close review of recent Tweets from the @realDonaldTrump account and the context around them, we have permanently suspended the account due to the risk of further incitement of violence," reported CNBC.
Monday was the first trading day since the company declared on Friday it was permanently barring President Trump from its service.
The slip on Monday pushed Twitter's stock below $48 each share. At one point during early morning trading, Twitter dropped as low as $45.15 per share prior to rebounding a bit.
The social media giant banned Trump's account on Friday, citing the susceptibility of further incitement of violence following the fatal rebellion at the Capitol Hills on Wednesday.
In a detailed explanation posted on Twitter's blog on Friday, the social network stated recent tweets of the president amounted to the glorification of violence when read in the context of the US Capitol siege and plans making rounds online for future armed protests around President-elect Joe Biden's inauguration.
Social media and tech companies' shares slid Monday due to the fallout from the rampage on the US Capitol by pro-Trump protesters.
The incumbent president's Twitter account @realDonaldTrump garnered about 89 million followers.
Regarding its decision, Twitter also cited Trump's posts on the siege at Capitol Hills last week.
Also Read: Police Officer Who Responded to US Capitol Mob Siege Dies of Alleged Suicide
The move was reportedly a watershed moment for technology platforms that have undergone conflicting pressures to defend free speech on one hand and to restrain hate speech and misinformation on the other hand.
Twitter wrote in a statement that the context, instead of merely the content of some of the president's most recent tweets suggested "they were highly likely to encourage and inspire people to replicate the criminal acts that took place at the US Capitol on January 6, 2021," reported Yahoo.
Five billion dollars were wiped off the micro-blogging site's value.
The social media platform also permanently suspended two Trump loyalists, attorney Sidney Powell, and former national security adviser Michael Flynn.
At 1011 GMT, Twitter's US-listed shares slid 6.8 percent at $47.94 in thin pre-market trading.
It was the first time the micro-blogging site banned a head of state, igniting a worldwide controversy over the effect of US tech giants on free speech and democracy more broadly.
Twitter echoed critics who made efforts to connect Trump's rhetoric with the contravention of the US Capitol.
Trump responded by alleging Twitter of coordinating "with the Democrats and the Radical Left in removing my account from their platform, to silence me-and YOU, the 75,000,000 great patriots who voted for me," reported The Epoch Times.
Twitter also stated two of Trump's tweets on Friday contravened its policy against the glorification of violence and pointed to plans for future armed protests.
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