Twitter stock has fallen 12% so far in 2021, based on early trading on Thursday, and even slipped below $45.10, its initial public offering price in November 2013. According to Bloomberg, the decision to ban Trump, who had more than 88 million followers, could have negatively impacted users and engagement.
- Argus Research speculated that Twitter “could lose several million” daily active users due to Trump’s ban, and “further push Congress to move ahead with its anti-monopoly activities.”
- Rosenblatt Securities, nonetheless, says the move “all but secures” a “dismal” near-term outlook as it leaves “little room to deliver positive 2021 results.”
- Twitter stock’s dismal performances in January place it as the weakest among components of the S&P 500 Index, which has gained 2.5% year to date.
- The stock declines come even as Twitter outperformed, rising nearly 70% last year despite some weak quarterly reports.
- Many analysts remain optimistic about Twitter’s longer-term prospects, given an improved view for digital advertising.
Twitter is currently declining. TWTR: NYSE is down 1.89%