Over the years, the big tech companies have made enormous amounts of money by monetizing discussions about politics. But now that Twitter and Facebook have silenced President Trump and have deeply alienated large portions of their user bases, their stock prices are tumbling. I figured that this would happen, but I didn’t anticipate that it would happen this rapidly. To be honest, what we are witnessing is nothing short of breathtaking. For example, at one point on Monday Twitter’s market value had fallen by five billion dollars…
As a result of the ban, Twitter stock fell 12 percent on Monday, and the share-price decline wiped $5 billion from the company’s $41 billion market capitalization.
According to Business Insider, the stock likely fell because investors are worried that the ban will diminish interest in the platform and lead to boycotts among those who see the decisions as politically motivated and a way to silence conservative voices.
The executives at Twitter may not have liked it, but President Trump was their number one draw by a very wide margin.
And it is very bad business to kill off your number one source of income, but that is exactly what Twitter just did.
So what will Twitter do now with no Trump? This is a question that CNBC’s Jim Cramer would very much like an answer to…
“I think that there are a lot of people who literally knew that the president was the most important person, and you had to keep checking him, and then you had to check people who talked about him,” Cramer said. “And you just had this endless wave, this web that the president created, and then it was like action and reaction, so I think that the surprise factor of going to Twitter, which was of course the president, is gone!”
In addition to permanently banning Trump, Twitter also decided to ban approximately 70,000 of his followers.
Those bans have alienated millions of other users, and that is a major problem.