Twitter permanently suspends Donald Trump’s Twitter account.
Jakub Porzycki | NurPhoto | Getty Images
Twitter shares fell more than 8% in Monday’s premarket, the first trading session since the social media company permanently suspended President Donald Trump’s account.
Twitter said Friday night that it decided to remove the president “because of the risk of further incitement to violence,” following the deadly riot in the Capitol.
The move could likely fuel legislation to repeal Section 230, the law that protects Internet companies from liability for content that users post, analysts said. Trump has spoken out loudly in disdain for Section 230, and some politicians in both parties have complained about it.
“While a Democratic government may be less focused on major Section 230 reform, recent events may make content laws more likely,” BofA Securities analysts said in a note to clients. Still, the company reiterated its buy rating on the stock.
“We would anticipate new proposed legislation in Congress on social media content given recent events, but note that concerns about content are not new and we think new laws will provide social media companies with better guidance and less uncertainty,” the analysts wrote.
“Can we expect more regulatory activity? It seems likely,” Bernstein analysts said in Sunday’s note.
Meanwhile, other social media companies also acted lower after actions against Trump. Facebook, which extended an initial 24-hour suspension to an indefinite period, was down about 2%. Snap and Pinterest each traded about 1% lower.
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