Twitter's stock slump is about more than banning Trump
Twitter shares fell by as much as 12% on Monday after the company announced it had permanently banned President Trump's account.
Between the lines: While many were quick to say the decline was blowback for the company's decision, the performance of other social media companies' stock prices suggests there's more to the story.
On the other side: Snapchat banned the president's account on Wednesday and has seen its stock price jump since, gaining 5.3% on Thursday, 0.6% on Friday and another 3% on Monday.
- Since banning Trump from its platform Snapchat shares are up 9.2%.
- Twitter's shares have fallen 9.5% over the same time period, despite not announcing a ban on Trump until Friday after the market closed.
- Facebook's stock price has declined by about 2.5% during that period, but gained 2.1% on the day it announced it was banning Trump for at least the remainder of his time in office.
The big picture: Twitter's shares have been in decline since hitting a record high of $55.87 on Dec. 18.
- Still, over the last year Twitter stock has risen by 47%.
- Facebook's stock has gained around 20%, trailing the overall market.
- Snapchat is up by 212%, almost entirely since announcing spectacular and unexpected earnings growth last year.