Big Tech stocks tumble following Trump’s banning: How the situation, Recommends for investors
Overview of the stock prices
Apple (AAPL, -2.3%), Facebook (FB, -4.0%), Amazon.com (AMZN, -2.2%), Google parent Alphabet (GOOGL, -2.3%) and Twitter (TWTR, -6.4%) – sold off heavily on Monday, according to Investors.
Weekness in Big Tech weighed on all the blue-chip indices to varying extents. The Dow Jones Industrial Average declined 0.3% to 31,008, while the Nasdaq Composite took a bigger 1.3% hit to 13,036.
Twitter saw its shares drop by 6 per cent Monday wiping $2 billion off the company value on the first day of trading after banning Donald Trump from the platform.
The tech giant permanently suspended the president citing a 'risk of further incitement of violence' in the wake of the storming of the U.S. Capitol by his supporters.
|Twitter saw its shares drop as much as 12 per cent in early trading on Monday|
Twitter’s move against the outgoing president — whose account had more than 88 million followers — was the first permanent suspension for a head of state, and it’s likely to spark furious debate about the role tech companies play in regulating speech.
It may also hurt Twitter’s user base as Trump supporters and right-wing activists pledged to boycott the company’s blockbuster decision while Republican lawmakers pushed for regulatory changes.
Facebook tumbled as much as 4.5% on Monday as the company's indefinite ban of President Trump continued to drive investors out of the stock, according to Business Insider.
The slide saw $33.6 billion erased from Facebook's market cap at intraday lows. Shares have since pared some losses and now trade about 2.6% lower.
The stock's decline comes as Wall Street reconciles with the president's role in encouraging supporters to storm the Capitol on Wednesday. Facebook CEO Mark Zuckerberg announced on Thursday the company would ban Trump "indefinitely," adding the risks of allowing him to remain on the platform "are simply too great."
Whether Big Tech's losses will stick remains to be seen, but Monday did serve as a quick reminder of growth's double-edged sword. Many growth stocks, even the market's largest, can have momentum turn against them in a flash, whether it's on regulatory worries, a disruptive rival or some other outside shock.
Recommendations for investors
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