Social media giant Twitter may be facing severe consequences after banning President Donald Trump and several other conservative voices from its platform.
Since banning President Trump, they’ve seen their stock take a big hit.
Shares in the social media company dropped as low as 12%.
Jim Cramer of CNBC says that President Trump was a “great salesperson” for Twitter and his loss will be felt throughout the company.
With as many people that are still loyal to the president, Twitter will surly struggle to add new users.
Business Insider covered the story:
Twitter stock fell as much as 12% on Monday after the social-media company permanently suspended President Donald Trump's account on Friday evening. The share-price decline wiped $5 billion from Twitter's market capitalization.
Twitter's bosses suspended Trump's account - which had about 88 million followers - after the world leader's fanning of conspiracy theories about voter fraud and election theft spurred thousands of his supporters to lay siege to the Capitol last week.
"After close review of recent Tweets from the @realDonaldTrump account and the context around them we have permanently suspended the account due to the risk of further incitement of violence," Twitter said.
Jim Cramer of CNBC says the company will struggle without President Trump, and will have a hard time attracting new users.
Fox News with that story:
CNBC host Jim Cramer offered a dire warning for Twitter Monday amid the fallout from the tech giant's decision to ban President Trump from the social media platform.
"Squawk on the Street" co-anchor Carl Quintanilla pointed out Monday morning that Twitter was the only major company whose share price dropped substantially during pre-market hours, losing more than 7% of its value following Friday's expulsion of the president. (Twitter's stock price fell 6.41% by the time the market closed Monday.)
Cramer responded by explaining how significant Trump became to the social media company since he became president.
"I think that there were a lot of people who literally knew that the president was the most important person and that you'd have to keep checking him," Cramer told Quintanilla. "And then you'd have to check people who talk about him. You just had this endless wave, this web that the president created, and it was action and reaction."