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Twitter And Facebook Lost $51 Billion Of Combined Market Value Since Booting Trump From Their Platforms|RN

Phillip Faraone/Getty Images for WIRED25; Francois Mori/AP

By Ben Winck


Facebook and Twitter have collectively seen $51.2 billion erased from their market caps over the last two trading sessions as investors balk at their banning of President Trump.


Facebook saw $47.6 billion erased from its public valuation, while Twitter’s market cap dropped by $3.5 billion.


Both companies announced last week they would permanently ban the president, saying keeping him on their platforms posed too large a risk of additional violence.
The bans come as Trump faces blowback from the government and corporations for his role in inciting last week’s violent riots at the Capitol.


Facebook and Twitter, the two largest social media platforms to permanently ban President Donald Trump for his role in last week’s Capitol riots, saw $51.2 billion in combined market value erased over the last two trading sessions.


Companies across sectors have responded to the president’s rhetoric in recent days by pausing political donations, making statements decrying his inflammatory remarks, and pulling products with links to right-wing movements. Facebook and Twitter possibly took the biggest retaliatory steps when they indefinitely banned Trump from their platforms on Thursday and Friday, respectively.


Both companies cited the risk of additional violence for their bans, but investors largely balked at the action. Facebook tumbled 4% on Monday and another 2.2% on Tuesday as shareholders dumped the stock, likely fearing the ban could drive users off the platform. By the time markets closed on Tuesday, Facebook’s market cap sat $47.6 billion below its Friday level.

Twitter plunged 6.4% to start the week and dipped another 2.4% as the sell-off continued into Tuesday’s close. The declines saw Twitter’s market cap drop by $3.5 billion.


To be sure, Twitter rose as much as 2.9% on Wednesday while Facebook wavered at its previous closing level. And analysts haven’t lowered the stocks’ median price targets following the bans, signaling the slides were likely knee-jerk reactions that will reverse over time.


Other tech giants responding to last week’s insurrection have fared better through the week. Apple and Google have both climbed slightly since announcing after Friday’s close they would remove right-wing social network Parler from their app stores. Amazon shares are up 1.6% since announcing on Sunday that it kicked Parler off of its web hosting service.


Still, the actions could come back to bite tech companies in the final week of Trump’s presidency. CNN reported on Monday that Trump might retaliate against tech giants for their bans. It’s not yet clear what the president’s actions would look like and if they will materialize before President-elect Joe Biden is inaugurated.

Facebook traded at $251.70 per share as of 10:25 a.m. ET Wednesday, down roughly 8% year-to-date.

Twitter traded at $47.94 per share, down 12% year-to-date.

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Twitter Indefinitely Suspends President Donald Trump To Avoid Inciting Further Violence |The Republican News

President Donald Trump arrives to speak at the “Operation Warp Speed Vaccine Summit” on the White House complex, on Dec. 8, 2020.Evan Vucci / AP

“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,” Twitter’s official “Safety” account tweeted.

By Ben Collins and Brandy Zadrozny

Twitter permanently suspended President Donald Trump’s account on Friday, citing “the risk of further incitement of violence.”

The president’s account was initially banned for 12 hours on Jan. 6 due to “severe violations of our Civic Integrity policy,” after he used the platform to tweet condemnation against Vice President Mike Pence as his supporters stormed the Capitol.

“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,” the company said in a tweet.

The company banned the president’s account after years of public pressure and several attempts to limit the reach of his account in recent days. Hundreds of Twitter employees signed a letter urging Twitter CEO Jack Dorsey to ban the president for using the platform to incite violence in the wake of the Capitol siege.

“In the context of horrific events this week, we made it clear on Wednesday that additional violations of the Twitter Rules would potentially result in this very course of action,” Twitter said in a blog post. “Our public interest framework exists to enable the public to hear from elected officials and world leaders directly. It is built on a principle that the people have a right to hold power to account in the open.”

“However, we made it clear going back years that these accounts are not above our rules and cannot use Twitter to incite violence,” the post continued. “We will continue to be transparent around our policies and their enforcement.”

This was the second time in a week Twitter had taken action against the president’s account. Twitter removed three tweets that promoted conspiracy theories about the election and locked Trump’s account on Wednesday, citing “a risk of violence,” after a violent riot at the Capitol. Trump’s official @POTUS account is still active.

In the post, the company cited Trump’s two most recent tweets as an explanation for the removal.

In one, Trump wrote: “The 75,000,000 great American Patriots who voted for me, AMERICA FIRST, and MAKE AMERICA GREAT AGAIN, will have a GIANT VOICE long into the future. They will not be disrespected or treated unfairly in any way, shape or form!!!”

In the next, he tweeted, “To all of those who have asked, I will not be going to the Inauguration on January 20th.”

Taken together, the company determined, they were “likely to inspire others to replicate the violent acts that took place on January 6, 2021, and that there are multiple indicators that they are being received and understood as encouragement to do so.”

The suspension drew immediate praise from Democratic politicians.

“Thank you @twitter for taking this action,” tweeted Sen. Joe Manchin, D-W.V. “We must come together as a country to heal and find a common path forward.”

This story is developing. Please check back for updates.

(Ben Collins covers disinformation, extremism and the internet for NBC News.
Brandy Zadrozny is an investigative reporter for NBC News.)

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