Yahoo Finance’s Emily McCormick discusses Twitter’s stock drop after the company permanently banned President Trump from the platform.
ADAM SHAPIRO: We're also keeping an eye on the ramifications of Twitter's decision to block President Trump. Emily McCormick is watching that, as well as the latest on other social media outcomes from this. Emily, what have you got for us?
EMILY MCCORMICK: Well, Adam, just taking a look here since we are just after market close, do want to highlight where these stocks ended today's session in the wake of their bans on President Donald Trump's accounts, as well as others who had contributed to spreading misinformation and inciting violence. Now, we have Twitter's stock down more than 6%. That stock actually ending below $50 per share for the first time in one month.
We also saw Facebook down about 4%, Amazon down 2%, Google down 2% as well. Snap actually bucking the trend and ending higher, even though it did also ban President Donald Trump from posting on Snapchat, although we did see that company's price target also raised at Jefferies earlier today, so that also coming into play here.
But turning to Twitter specifically, I do want to highlight what some analysts have been saying around what this decision to ban Trump's account means for the platform. And some analysts are saying that this is going to be consequential for Twitter's business model. Now specifically, we had DA Davidson analyst Tom Forte on Yahoo Finance earlier. And what he mentioned is that this decision could dent profits by up to 10%, since Trump may potentially create his own platform or turn to another platform to post and pull away some users from Twitter, and, in doing so, Twitter could then have less of a user base to actually use to attract those advertising dollars.
So as we go ahead, taking a look at those monetizable daily active users is going to be important here going forward for that platform. And then finally, taking a look at some of these other companies, these internet giants that have recently made moves in the wake of those riots at the Capitol last week, I also want to highlight Amazon, because that company is now in the crosshairs of a lawsuit from Parler, which, of course, Amazon Web Services had just pulled off of its servers as of this morning, or overnight really, I should say, heading into this morning session.
So we are seeing Amazon now coming under antitrust scrutiny. This is something that we could potentially see ratcheted up around Twitter and Facebook as well. So again, a lot to continue watching here, but these social media companies and internet giants definitely seeing their stocks taking a hit today. Adam and Seana.
SEANA SMITH: Hey, Emily. Taking a look at Facebook, because we haven't heard if they're going to eventually reinstate Trump's personal account here, do we have any update just on the timing of that or when we could expect to hear from Facebook?
EMILY MCCORMICK: That's right, Seana. So this was a decision, and this is definitely a developing story here, because Facebook had actually originally blocked Trump's ability to post to Facebook as well as Instagram last Wednesday immediately in the wake of those Capitol Hill riots. The company then extended that ban to take place until at least Inauguration Day or till the end of his term. No word yet on whether Facebook is going to actually be extending that beyond Inauguration Day. But again, anything could really go here.
Remember that there have been calls on both sides of the aisle, really, to have Facebook be a firmer arbiter of the type of content that is put on the platform. So we could see a little bit more rhetoric around that, and potentially Facebook extending this ban. But again, we will have to update you on that. Seana and Adam.