Twitter has permanently suspended Donald Trump’s Twitter account.
Jakub Porzycki NurPhoto | Getty images
Shares of Twitter sank more than 8% in the preliminary market on Monday, the first trading session since the social media company finally suspended the account of President Donald Trump.
Twitter announced late Friday that it had decided to oust the president “because of the risk of further incitement to violence”
The move could likely revive legislation to repeal Section 230, the law that protects Internet companies from liability for publishing content by users, analysts say. Trump strongly expressed his contempt for section 230, and some politicians from both parties complained about it.
“While the Democratic administration may be less focused on significant reform of Section 230, recent developments may make content legislation more likely,” BofA Securities analysts said in a note to clients. Still, the company reaffirmed its rating to buy the shares.
“We would expect new proposed legislation in Congress on social media content in light of recent events, but keep in mind that content concerns are not new and we believe the new laws will give social media companies better guidance and less uncertainty.” , analysts write.
“Can we expect more regulatory activity? It seems likely,” Bernstein analysts said in a Sunday note.
Meanwhile, other social media companies also traded lower after taking action against Trump. Facebook, which extended the initial 24-hour suspension indefinitely, was about 2%. Snap and Pinterest traded about 1% lower.
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