Many cheered the move—including hundreds of Twitter employees—but the company’s stock woke up to a hangover on Monday, dropping as much as 12.3% in early trading and shedding about $5 billion of market value. The stock price recovered somewhat throughout the day Monday, losing 6.4% intraday. But the volatility may not be over.
Was Trump’s account really worth $5 billion to Twitter? And why did so many investors head for the exits? Analysts are suggesting three main possibilities.
1. Fear of sagging engagement
The near-term fear is that because Donald Trump is such a prominent figure on Twitter, the platform may see a large chunk of engagement disappear with him.
“The Trump Twitter ban may lead to fewer users, as one of the platform’s largest speakers is removed,” says Georgetown internet law professor Anupam Chander in an email. “Some users have already tried to migrate to Parler, for example, though that has proven to be a dead end.” (At least for now: Amazon Web…
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Source : fastcompany.com
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