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Twitter's stock falls after Trump's account is suspended

January 11, 2021. Summarized by summa-bot.

Compression ratio: 58.9%. 2 min read.

WASHINGTON, DC - SEPTEMBER 5: Twitter chief executive officer Jack Dorsey looks on during a Senate Intelligence Committee hearing concerning foreign influence operations' use of social media platforms, on Capitol Hill, September 5, 2018 in Washington, DC. Twitter CEO Jack Dorsey and Facebook chief operating officer Sheryl Sandberg faced questions about how foreign operatives use their platforms in attempts to influence and manipulate public opinion. (Photo by Drew Angerer/Getty Images)

Shares of Twitter fell Monday after the company announced late Friday that it had permanently banned President Donald Trump from the platform.

New York (CNN Business)Shares of Twitter fell Monday after the company announced late Friday that it had permanently banned President Donald Trump from the platform.

Twitter (TWTR) joins a growing list of companies distancing themselves from Trump following the deadly attack at the Capitol last week by a mob of the president's supporters, many of whom believe Trump's false assertion that the election was stolen from him.

From a financial perspective, investors may believe banning Trump could hurt Twitter because some former followers of his feed may decide to leave the platform due to their belief that the company is silencing conservative voices.

Twitter shares fell as much as nearly 10% early Monday before paring some losses and trading down 4% by midday.

Plus, Twitter and other social media companies may also come under more pressure from the Biden administration and Democrats who will soon control the House and Senate.

Even after Monday's big drop, though, shares of Twitter are still up about 45% over the past 12 months.

Twitter reported a healthy jump in earnings for the third quarter but investors are worried about a slowdown in user growth.

"I think we have an opportunity to show people a much broader aspect of Twitter than just what they see with news and politics," said Twitter CEO Jack Dorsey during a conference call with analysts in October.

Many Twitter users have attracted massive followings, and their tweets are not just newsworthy.

Shares of a health tech company named Signal Advance (SIGL), which is not the owner of the Signal app, soared more than 525% Thursday following Musk's tweet.

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