Twitter stock fell by as much as 12% on Monday after the social-media company permanently suspended President Trump’s account on Friday evening. The stocks dropped 6.4% at the close of trading
The decline resulted in the social media giant losing $5 billion in market capitalization, according to Market Insider.
Twitter stocks drop by as much as 12 percent Monday after permanently deleting Trump's account | Just The Newshttps://t.co/ThCi6cEutj
— John Solomon (@jsolomonReports) January 11, 2021
This is not the first time, Twitter has struggled.
In 2016, Twitter was losing customers, and its stock was falling.
On February 10, 2016, a CNN headline read:
Twitter Is Losing Customers And Its Stock Is Falling.
The social media company reported Wednesday that it lost 2 million users in the last three months of 2015. Shares plummeted as much as 12% in after-hours trading.
In an article on January 26, 2016, The Verge headline reads:
Is Twitter Doomed?
It seems like things had not improved for Twitter judging by The Verge headline on Apr 26, 2016 article:
Nothing Twitter Is Doing Is Working Jack Squat
Twitter reported its first-quarter earnings today, and they came in under expectations: the company’s haul of $595 million was less than the $607.8 million that analysts expected, and so is the $590 million to $610 million it expects to make in the current quarter.
The company added 5 million users, for a total of 310 million — more than Wall Street expected, but well short of the growth that would allow it to siphon significant advertising revenue from Facebook and Google. Twitter’s stock fell more than 12 percent after hours as the market confronted reality: nothing Twitter has done to improve the appeal of its core product over the last year has resonated.
However, in 2016 Twitter began to thrive! What changed? What happened in 2016 to turn things around for Twitter? Donald Trump announced he was running for President and began to tweet. For the next 4 years, Twitter continued to grow. President Trump’s 88.5 million followers signed up just to read his messages.
More than 300 Twitter employees signed an internal petition calling for President Donald Trump to be permanently banned from the platform following the raid on the US Capitol on January 6th. What they don’t realize is that President Trump saved their company and very likely, their jobs.
With a mass exodus to alternate free speech platforms like Parler, MeWe, GAB, and others, Twitter appears to be imploding.
I’ve been asked where people’s Twitter followers went.
There’s not one answer, but the CEO of social network @getongab says it gained 600,000 followers today.
— scott budman (@scottbudman) January 12, 2021
Last week, as Twitter and Facebook were experiencing a mass exodus, Parler’s user base was exploding. Almost immediately, Apple, Google, and Amazon circled the wagons. The big tech bullies offered Parler an ultimatum…censor your users or we will shut you down. Parler was removed from Amazon’s servers on Sunday around midnight. Parler CEO is now suing Amazon.
WSJ reports – In a complaint filed Monday in Seattle federal court, Parler alleged that Amazon Web Services kicked the company off its cloud servers for political and anti-competitive reasons.
“AWS’s decision to effectively terminate Parler’s account is apparently motivated by political animus. It is also apparently designed to reduce competition in the microblogging services market to the benefit of Twitter, ” according to the complaint, which also accused Amazon of breaching a contract between the parties.
Amazon said Saturday that it would cut off Parler because it wasn’t confident in its ability to sufficiently police content on its platform that incites violence. The company said while it would no longer provide web services to Parler after Sunday at 11:59 p.m. Pacific time, it would preserve the platform’s data and help it migrate to different servers.
On Monday, Andrew Torba, the founder of Gab, said that the free speech platform saw 600,000 new users in one day as President Donald Trump has been censored from most mainstream tech platforms.
Torba previously revealed that Gab’s traffic exploded as high as 753 percent after Trump and many other conservatives have been purged from Twitter, Facebook, and other big tech platforms.