On Monday, Twitter shares plunged 12% intraday and shrank $2.6 billion in market value after it permanently blocked President Donald Trump‘s account. On the same day, Apple’s market value evaporated $51.6 billion, Amazon lost $34.4 billion, Google‘s market value evaporated $28 billion, and Facebook’s market value shrunk $30 billion, making a total of $146.6 billion in market value evaporation for the five tech giants. One commentary said, “So this is the vote.”
Twitter permanently blocked Trump’s account stock price plunged
Shortly after the opening bell on Monday (Jan. 11), Twitter (Twitter) shares fell as much as 12.3% to $45.17 per share, evaporating $5 billion in market value and closing down 6.4% for the day.
On Friday (Jan. 8), Twitter announced that it had permanently blocked the account of U.S. President Donald Trump, whose 88 million followers were wiped out overnight.
The accounts of former U.S. national security adviser General Michael Flynn and Trump lawyer Sidney Powell were also permanently blocked by Twitter. Twitter shares fell 3.7 percent in after-hours trading on Jan. 8 after the news was announced.
Facebook also blocked Trump’s Facebook and Instagram accounts for 24 hours last Wednesday (Jan. 6) following the violence in Washington, and extended the ban until the end of Trump’s term.
Meanwhile, on Friday (Jan. 8), Apple and Google removed the App Parler from their respective app stores, saying the company was not doing enough to address the threat of violence on its platforms.
Amazon also said on Friday (Jan. 8) that it would no longer host Parler on the Amazon Web Services cloud, taking the company offline as of Monday (Jan. 11).
Financiers: Top 5 Tech Giants Evaporate $146.6 Billion in Market Cap
With Twitter’s plunge on Monday, shares of other tech giants also plunged.
Facebook fell nearly 4 percent, while Apple, Google and Amazon all dropped more than 2 percent.
According to Chinese financier He Jiangbing’s estimates, on Monday (Jan. 11), Amazon’s market value shrank by $34.4 billion; Apple shrank by $51.6 billion; Google shrank by $28 billion, Twitter’s market value evaporated by more than $2.6 billion and Facebook’s market value evaporated by about $30 billion.
According to He Jiangbing’s estimate, the market value of the five major U.S. tech giants evaporated $146.6 billion on Monday.
Some netizens followed up He Jiangbing’s tweet with a comment, saying, “So this is the vote.
Screenshot of He Jiangbing’s tweet.
Analysts: Trump generated $2 billion in revenue for Twitter platform
According to analysts’ analysis, Twitter’s user engagement may decline after losing the platform’s big vocalist.
According to Mark Shmulik, an Internet analyst at Bernstein, the banning of Trump’s account, which has 88 million followers, could result in a “slight decline” in the number of Twitter users, but from a business perspective, the risk to user engagement is higher.
Mark Shmurik said the length of time users use the account will be more affected. Although Trump’s account has only the sixth highest number of followers, his tweets have three to four times more user engagement than other tweeters.
Tom Forte, a technology analyst at D.A. Davidson, pointed out that the risk now is that Trump may launch his own social networking platform or move to another platform, thus putting Twitter under competitive pressure. Twitter may also lose advertisers targeting Trump support groups. According to Tom Ford’s projection, 10% of Twitter’s earnings are at risk.
The market value Twitter lost after blocking Trump’s account matches an estimate by an analyst in 2017. The analyst said Trump had generated about $2 billion in revenue for the platform by engaging users and keeping them on Twitter as a platform.
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