Twitter stocks fell as much as 12% on Monday following the company’s decision to permanently suspend President Donald Trump’s account on Friday after the attack at Capital last week by Trump supporters,many of whom believe that the election was stolen from him.
The ban followed Facebook’s suspension of Trump for at least the rest of his presidency.
From a financial perspective, investors may believe banning Trump could hurt Twitter due to boycotts from those who see the ban as a politically motivated decision to silence a major conservative voice. There’s also the fact that even before Trump’s ban, advertisers may have decided they want to avoid sponsoring content on a platform that has become polarizing.
However,even after Monday’s big drop, shares of Twitter are still up about 45% over the past 12 months. A bigger return compared to Facebook’s 20% gain during the same time period.
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