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Twitter shares drop 8% after Trump’s account suspension

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Twitter’s first trading day has begun on a negative note after the social media giant permanently suspended U.S. President Donald Trump’s account late on Friday, January 8.

According to a report by Reuters, Twitter German-listed shares slumped as much as 8 percent on Monday, January 11.

Recall that the orgaisation had explained that suspension of Trump’s account, which had more than 88 million followers, was due to the risk of further violence, following the storming of the U.S. Capitol on Wednesday.

Techeconomy.ng gathered that at 1011 GMT, the social media firm’s U.S.-listed shares were also off 6.8 percent at $47.94 in thin premarket trading.

This medium also learnt that that was the first time Twitter banned a head of state, sparking a worldwide controversy over the impact U.S. tech giants can have on free speech and democracy more broadly.

Suffice to state that for Twitter’s balance sheet itself, the decision to ban the U.S. president is expected to have a moderate negative impact.

In his note looking into the issue, Berstein analysts wrote: “Expect slight user decline, though engagement erosion is a bigger question.

Far-right groups maintain a vigorous online presence on digital platforms like Parler, Gab, MeWe, Zello and Telegram and could disengage from mainstream social media.

There could also be additional costs for Twitter and others as they seek to further moderate content uploaded by their users.

“Incremental moderation may be welcome but it’s not cheap and could benefit Facebook that already employees a moderation army (around six times) larger than Twitter’s workforce.”

Like Twitter, Facebook Inc has suspended Trump’s account until at least the end of his presidential term later this month.

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