“After banning President Trump from their social media platforms, Facebook (NASDAQ:FB) and Twitter (NYSE:TWTR) have seen their combined market value plummet by $51.2-B over the last 2 trading sessions” — Paul Ebeling
Following the Capitol last wks chaos, Facebook and Twitter indefinitely banned Trump’s accounts, claiming there was risk of additional violence. Their decision prompted a major tech sell-off.
Twitter’s stock dropped 6.4% at the beginning of the wk and plunged another 2.4% as of Tuesday’s close. The fall resulted in Twitter’s market cap falling by $3.5-B.
Facebook stock was also dumped by investors in the wake of its decision to ban President Trump. The company saw a decline of 4% Monday and another 2.2% Tuesday, leaving its market cap at $47.6-B below its Friday mark.
Both platforms underestimated the President’s popularity, and while Twitter’s stock was trying to rally Wednesday morning it was dropping off in the afternoon session.
Facebook did not get any lift and hung around its prior closing mark. As of Wednesday afternoon,
Facebook traded at 251.34/share, and Twitter traded at 47.92/share. Our technical outlook for the pair is Neutral to Very Bearish.
Wednesday, the benchmark US market indexes finished at: DJIA -8.22 to 31060.41, NAS Comp +56.52 at 13128.96, S&P 500 +8.65 at 3809.84
The Russell 2000 (-0.8%) underperformed.
Volume: Trade on the NYSE came in at 945-M/shares exchanged
HeffX-LTN’s overall technical outlook for the US major market indexes is Bullish with a Very Bullish bias in here.
- Russell 2000 +6.9% YTD
- NAS Comp +1.9% YTD
- DJIA +1.5% YTD
- S&P 500 +1.4% YTD
Looking Ahead: Weekly Initial Claims, Continuing Claims, December Import Prices, Export Prices,, Import Prices ex-Crude Oil, and Export Prices ex-ag will be reported Wednesday.
Have a healthy day, Keep the Faith!