Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ US https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Facebook sees $ 34 billion wiped out of market capitalization as Trump ban continues to scare technology investors

Facebook sees $ 34 billion wiped out of market capitalization as Trump ban continues to scare technology investors



Mark Zuckerberg
  • Facebook crashed 4.5 percent on Monday as President Trump’s indefinite ban continued to drive investors away from the stock.
  • The decline wiped out $ 33.6 billion of Facebook’s market capitalization at its lowest daily levels.
  • CEO Mark Zuckerberg announced the ban on Thursday, saying the president’s role in the violent assault on the Capitol makes it too risky to keep him on the platform.
  • Twitter, which permanently banned Trump on Friday, also performed poorly amid a broad market downturn.
  • Watch Facebook live trading here.

Facebook sank 4.5 percent on Monday as investors continued to oppose a ban on President Donald Trump̵

7;s platform.

The slide showed $ 33.6 billion erased from Facebook’s market capitalization at its lowest daily levels. Since then, the shares have suffered some losses and are now trading at about 2.6% lower.

The downturn came as Wall Street came to terms with the president’s 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 risks of allowing him to remain on the platform “are simply too great.”

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Twitter, which permanently banned Trump on Friday, also tackled a wider market downturn on Monday. The decline noted that stocks of communications services are declining more than any other sector of the S&P 500.

Although Facebook is far from the only platform to ban Trump, it is among the biggest to do so. Investors are likely to fear that the move will force Trump users to boycott the website and gather elsewhere. Parler’s right-wing social media platform was ready to accept such users until Amazon removed the website from its hosting service.

In addition, Kevin Liptak of CNN said Monday that the president could retaliate against major technology companies in response to the bans. He signaled that he could take action against the companies, but it was unclear what those policies would look like, sources familiar with the matter told CNN.

Facebook was trading at $ 259.78 at 11:45 ET, which is approximately 4% since the beginning of the year. The company has 51 “buy” ratings, three “hold” ratings and two “sell” ratings from analysts.

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