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Twitter stocks opened trading for the week on a steep drop of around 12% on Wall Street amid controversy over the company’s decision to permanently shut down US President Donald Trump’s account last Friday night. But the Twitter stock cut its declines during the session.
Twitter stock losses were estimated at $ 5 billion due to the steep drop in Monday’s session.
Facebook shares also declined, but to a lesser extent, after the company suspended Trump’s account until the 20th of this month.
Twitter had justified the decision to shut down the Trump account, which has approximately 88 million followers, for fear that the account could be used to incite violence, after the storming of the US Congress building last Wednesday.
But the move has been criticized by some Republicans for allegedly violating the president’s right to free speech, while European Union commissioner Terry Breton said last week’s events would likely herald news. era of stricter official control.
This has raised concerns among investors, who fear that Twitter may become more exposed to the risk of any regulatory effort compared to its bigger competitors Facebook and Alphabet, which own Google and YouTube.
Other social media platforms such as Facebook have imposed a similar ban on Trump, but Twitter’s 12% drop in share far outweighed stock losses from one of its competitors.
“Trump has a large number of regular followers, and many of them will leave if he definitely switches between him and blogging,” said Andrea Cicioni, director of strategy at TS Lombard brokerage.
U.S. media said San Francisco police were preparing for a possible protest by Trump supporters outside the Twitter headquarters today.
The police department said in a statement that it was “aware of a possible demonstration” and that it would have “sufficient resources to deal with it”.
Major U.S. stock indexes fell to open on Monday, retreating from record levels as dealers turned to sales to reap profits after a sharp rise sparked by the vaccine and financial stimulus.
The Dow Jones Industrial Average started the trading session on Wall Street, dropping 82.60 points, or 0.27%, to 31,015.37 points, while the benchmark Standard & Poor’s 500 fell 21.50 points, or 0.56%, to 3,803.14 points.
The Nasdaq Composite Index, which was dominated by technology stocks, lost 153.20 points, or 1.16%, to 13,048.78 points.
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