- As the company’s indefinite ban on President Trump continued to drive investors out of the stock, Facebook plunged 4.5% on Monday.
- The plunge caused Facebook’s market value to be erased at an intraday low of $33.6 billion.
- Chief Executive Mark Zuckerberg announced the ban on Thursday, saying that the president’s role in the violent attack on the Capitol makes keeping him on the platform too risky.
- Amid widespread market depression, Twitter, which permanently bans Trump on Friday, also performed poorly.
- Watch the Facebook transaction live broadcast here.
As investors continue to oppose the platform̵
The decline caused Facebook’s market value to be erased at an intraday low of $33.6 billion. Since then, the stock has made up for some of the losses, and the share price has now fallen by about 2.6%.
The stock’s decline came as Wall Street and the president coordinated their role in encouraging supporters to storm the Capitol on Wednesday. Facebook CEO Mark Zuckerberg announced on Thursday that the company would “ban” Trump indefinitely, adding that the risk of allowing him to remain on the platform was “too great”.
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The permanent ban on Trump’s Twitter on Friday also did not perform as well as the market’s plunge on Monday. During the downturn, communications service stocks fell more than any other S&P 500 component stock.
Although Facebook is not the only platform that bans Trump, it is the largest platform. Investors may worry that this move will cause pro-Trump users to boycott the site and gather elsewhere. The right-wing social media platform Parler is ready to attract such users until Amazon removes the site from its hosting service.
In addition, CNN’s Kevin Liptak reported on Monday that the president may retaliate against large technology companies in response to the ban. The person familiar with the matter told CNN that he hinted that he might lash out by taking executive actions against the company, but it is not yet clear what these policies will look like.
As of 11:45 am Eastern Time, Facebook’s transaction price was $259.78, a year-to-date drop of about 4%. The company’s analysts gave 51 “buy” ratings, three “hold” ratings and two “sell” ratings.
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