OHIO COUNTY, W.Va. (WTRF) — Following President Trump’s permanent ban from tech giants like Twitter and Facebook, many supporters of the president are not happy with the barring social media from the leader of the free-world.
The market is now responding, as Twitter stock is dropping, but will this loss be as permanent as some intend?
Twitter stock dropped more than 10 percent Monday, but is only down two percent Tuesday.
The stock dropped $5 since Twitter permanently banned President Trump Friday, but some reports say it lost billions in terms of market capitalization. And according to Business Insider, Facebook has lost $34-Billion in market capitalization as well.
Because of the Section 230 Debate in Washington, social media stocks are going down, but if changes come to the bill, there will be an increase in cost to the companies either way.
Any change to the bill will cause an increased cost to those companies. Whether there is more regulation, that will cause an increase in the cost of running the organization, or if they repeal it, they could be open to more lawsuits which would cause higher cost of their legal work they’re needed to do. And that’s why they’re trending down right now.Walker Holloway, Senior Vice President at Hazlett Burt & Watson
But if there is an increase in cost, Holloway says the likes of Twitter have ways to pay up. They’ll start charging advertisers more money.
There is uncertainty in the market across the board as a new administration is set to come in.
Holloway says we’ll only really start to tell if the banning of certain users will hurt social media giants in their quarterly release.