Nick Wass / Associated Press
- Facebook tumbled to 4.5% on Monday as the company’s indefinite ban on President Trump continued to drive investors out of the stock.
- The dip wiped out $ 33.6 billion from Facebook’s market capitalization in the lowest days.
- CEO Mark Zuckerberg announced the ban on Thursday, saying the president’s role in the violent storming of the Capitol makes it too risky to keep him on the platform.
- Twitter, which banned Trump permanently on Friday, also underperformed amid the broad slump in the market.
- Check out Facebook Trading here.
Facebook sank to 4.5% on Monday as investors continued to push for President Trump’s ban on the platform.
The slide wiped out $ 33.6 billion from the Facebook market capitalization by the lowest day. Shares have since increased some losses and are now trading 2.6% lower.
The decline in the share comes as Wall Street reconciles with the president’s role in encouraging supporters to storm the Capitol on Wednesday. Facebook CEO Mark Zuckerberg announced on Thursday that the company will ban Trump “indefinitely”, adding the risks of having him added to the platform are simply too great.
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Twitter, which banned Trump permanently on Friday, also fared better on Monday than the broader slump in the market. As a result of the downturn, the shares of the communications services fell more than any other S&P 500 sector.
While Facebook is by far not the only platform to ban Trump, it is one of the biggest to do so. Investors are likely to fear that the move will lead to users who support Trump boycotting the site and collapsing elsewhere. The right-wing social media platform Parler intended to take in such users until Amazon removed the website from its hosting service.
In addition, CNN’s Kevin Liptak reported Monday that the president could retaliate against large technology companies in response to the ban. He has indicated that he may take action against the companies, but it is unclear what the policy would look like, sources familiar with the matter told CNN.
Facebook traded ET at $ 259.78 from 11:45 a.m., about 4% lower than the previous year. The company has 51 “buy” ratings, three “hold” ratings and two “sell” ratings from analysts.
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