Twitter’s share price plummeted more than 10 percent at Monday’s market opening in the first trading session since the site permanently suspended President Donald Trump from the platform.
CNBC reports that Twitter stock dropped by as much as 12.3 percent on Monday morning, reaching a low as $45.17 per share. The stock dip comes shortly after the company’s permanent suspension of President Trump last week.
The company stated last week that President Trump was suspended from the platform due to the “risk of further incitement of violence.”
After close review of recent Tweets from the @realDonaldTrump account and the context around them we have permanently suspended the account due to the risk of further incitement of violence.https://t.co/CBpE1I6j8Y
— Twitter Safety (@TwitterSafety) January 8, 2021
CNBC notes that the move could reignite legislation to revoke Section 230, which protects internet companies from liability for content users posts according to analyst notes. Bank of America Securities analysts said in a note to clients: “While a Democratic administration may be less focused on significant reform of Section 230, recent events may make content legislation more likely.”
The Bank of America Securities Analysts added: “We would anticipate new proposed legislation in Congress on Social Media content given recent events, but note content concerns are not new and we think that new laws will provide social media companies with better guidelines and less uncertainty.”
Bernstein analysts stated in a note on Sunday: “Can we expect more regulatory activity? It seems likely.”
Facebook also permanently suspended Trump and saw its stock price drop by around two percent today, similar Snap and Pinterest both also traded around 1.5 percent lower.