Twitter shares collapse nearly 20% after Donald Trump's harsh criticism



[ad_1]

Finance

The severe critic who launched Donald Trump against the company of birds and the results published by the social network flow near from 20% shares in Wall Street futures. The technology sector, and especially the social media sector, is under special scrutiny after the spectacular rally that has accumulated in recent years on Wall Street.

This is the second negative wave affecting the company, which is viewed by analysts as an overreaction on the part of investors.

"The market is overreacting ," said Michael Pachter, an analyst at Wedbush. "If the active accounts were eliminated or suspended, the affected users would complain."

When figuring out an explanation, the one that generates the most consensus is one that with policies of these characteristics would set limits to one of the company's biggest attributes, which is the growth in the number of # 39; s users.

"The common investors are hypersensitive to any high that slows the speed of Twitter, since the stock has had a considerable increase over the last six months "Says Daniel Ives, an analyst at GBH Insights." We see a minimal financial impact right now. "

For its part, Bloomberg Intelligence Analyst, Jitendra Waral, warned that the" volume of 39; elimination of false accounts, ] although good in the long run, generates uncertainty in the growth expectations of users in the short term ".

It should be noted that the President of the United States, Donald Trump accused Twitter on Thursday of restricting the visibility of Republicans on his platform, without [19659004] Trump's comments follow a Wednesday vice-presidential report that the visibility on Twitter of Republican National Committee President Ronna McDaniel and other Republicans, including including spokesman Donald Trump Jr., is limited.

"The notion that social media companies would suppress certain political views should worried to all Americans, Twitter should respond publicly to what is really happening", McDaniel wrote on Twitter.

Twitter stated that the technology used is based on user behavior and not in political opinion.

Twitter instituted a change of policy on July 12 to increase the credibility of the service and reduce the suspicion of fraud This change cost its 100 most popular users the 2% of its subscribers, on average, according to the Keyhole social network data company.

The Washington Post reported that the rate of suspension of accounts of the company more than doubled since October 2017, and that Twitter has disabled more than 70 millions accounts in May and June.

Change cost the former president Barack Obama 2 million followers in the morning after the change and the singers Katy Perry and Justin Bieber lost 3 million each, reported the Washington Post, citing the company's Twitter Counter analyst.

The report says that the count Trump lost more than 200,000 of his 53 million followers.

First it was Facebook, now it is turn to Twitter

The news of the week on Wall Street was undoubtedly the only one. collapse quotes from the company created by Mark Zuckerberg, who, although precipitated in the closure after the marketing, has materialized in the wheel of Thursday

the fall of yesterday from Facebook reached historic highs. It was the biggest loss, in terms of capitalization, never recorded on Wall Street.

In one session lost $ S 120,000 million the result of a 19% collapse at the end of the regular day

The downward wave is moving today To another social network listed on the New York Stock Exchange. The shares of Twitter, as yesterday yesterday with Facebook, sometimes rub 20% fall on Wall Street futures.

Their titles go down well below the level of 40 dollars. Despite a similar blow, the loss in terms of capitalization differs radically from that suffered by Facebook.

At the close of yesterday, Twitter had a market value of US $ 33.280 million. A fall of 19% recorded during the previous session by Facebook would mean a loss of about $ 6,300 million.

Investors Are Raised to Collect Accumulated Profit on Twitter last year following the publication of its quarterly results and Coinciding with Threats Launched by the US President Donald Trump, a leading user of the social network.

[ad_2]
Source link