WHAT YOU NEED TO KNOW:
- Following Twitter’s decision to permanently suspend President Donald Trump’s account, the company’s shares dropped by almost 10 percent in the first trading session.
- CNBC’s Jim Cramer explained that it’s because most people only constantly checked on Twitter for the president’s tweets.
- Cramer advised the company to offer a new attraction on their platform now that the endless content that Trump offered is gone.
Twitter stocks plummeted on Monday after the social media platform issued a permanent suspension on President Donald Trump’s account. The financial repercussions of the company’s decision prompted Jim Cramer from CNBC to advise them to find a new attraction for their platform “very, very quickly.”
Following the president’s lost access to his Twitter account, the company’s shares dropped by almost 10 percent in the first trading session. Their stock has since somewhat risen again but is still down by more than five percent when the day ended.
Cramer explained that the drop could be blamed on the disappearance of the previously “endless wave” of content that the president’s tweets offered.
The president was banned from the platform for his posts after the pro-Trump mob’s violent attack on the U.S. Capitol on January 6. The platform’s statement read, “We have permanently suspended the account due to the risk of further incitement of violence.”
Despite all the hate against the president, Cramer pointed out that most people consider him the “most important person,” such that “you had to keep checking him, and then you had to check people who talked about him.”
Now that he’s no longer tweeting, that constant checking on Twitter has dissipated.
Cramer said that even he has started to check his Twitter feed less frequently now, and that his attention has moved to sports.
He added, “You just had this endless wave, this web that the president created, and then it was like action and reaction, so I think that the surprise factor of going to Twitter, which was of course the president, is gone!”
Trump was also suspended by other social media companies, whose shares also dropped on Monday. Facebook, which also issued an indefinite ban against Trump, had shares down by about two percent. Pinterest and Snap meanwhile traded about 1.5 percent lower.
Cramer offered some advice for Twitter: “Twitter’s got to come up with a new thesis very, very quickly because I think… they never talked about the power of Trump in bringing in people. I am telling you the @realDonaldTrump was a great sales person for Twitter.”