Twitter's share price fell almost 10% in premarket trading today after the micro-blogging website decided to permanently ban US President Donald Trump.
On Friday, Twitter announced that it has Donald Trump's account after suspending it for 12 hours for breaking the company's terms of service. Earlier in the week, Trump spoke to a rally, post which protestors stormed the Capitol building as Congress was certifying the votes to confirm the election results. Late Friday, Twitter shared a blog post confirming the ban and it noted that the action was taken "due to the risk of further incitement of violence".
After close review of recent Tweets from the @realDonaldTrump account and the context around them — specifically how they are being received and interpreted on and off Twitter — we have permanently suspended the account due to the risk of further incitement of violence.
Following the ban, Twitter's share price fell almost 3.7% late Friday afternoon and it further fell almost 10% in premarket trading today. Trump's account ban contributed to the drop as investors are worried that the ban would result in boycotts and will reduce the user's interest in the platform.
Twitter was not the only company that blocked Donald Trump. Last week, Facebook and Twitch also decided to block Trump from their respective platforms. Both Amazon and Facebook also saw a drop of 1.8% and 2.5% in their share prices respectively.
Furthermore, Apple and Google removed Parler from their respective app stores while Amazon has suspended the company's hosting account after the Capitol attack.