Nick Wass / Associated Press
- Facebook fell 4.5% on Monday as President Trump’s indefinite ban on the company continued to alienate investors from the shares.
- The fall caused $ 33.6 billion to be wiped out of Facebook’s market capitalization at intraday lows.
- CEO Mark Zuckerberg announced the ban on Thursday, saying the president’s role in the violent invasion of the Capitol makes it very risky to keep him on the platform.
- Twitter, which banned Trump permanently on Friday, also underperformed amid the broad market slump.
- Watch the Facebook trade live here.
Facebook plunged 4.5% on Monday as investors remained reluctant to ban President Donald Trump from the platform.
The drop was $ 33.6 billion, erased from Facebook’s market capitalization on intraday lows. Since then, the shares have reduced some losses and are now trading 2.6% lower.
The stock slump comes at a time when Wall Street is reconciled with the president’s role of encouraging his supporters to invade the Capitol on Wednesday. Facebook CEO Mark Zuckerberg announced on Thursday that the company would ban Trump “indefinitely”, adding that the risks of allowing him to remain on the platform “are just too great”.
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Twitter, which banned Trump permanently on Friday, also underperformed the broader market slump on Monday. The crises saw communications services stocks drop more than any other sector in the S&P 500.
While Facebook is far from the only platform to ban Trump, it is among the largest to do so. Investors are likely to fear that the move will prompt pro-Trump users to boycott the site and meet elsewhere. The right-wing social media platform Parler was ready to receive these users until Amazon removed the site from its hosting service.
In addition, CNN’s Kevin Liptak reported on Monday that the president may retaliate against major technology companies in response to the bans. He signaled that he can attack through executive actions against companies, but it is unclear what these policies would look like, sources familiar with the matter told CNN.
Facebook traded at $ 259.78 as of 11:45 am ET, down about 4% year-to-date. The company has 51 “buy” ratings, three “wait” ratings and two analysts “sell” ratings.
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