An American leading social media company, Twitter, saw its shares drop as much as 8.5% at the start of Monday’s trading session on the New York Stock Exchange.
The fall is largely attributed to record sell-offs from investors on account of the social media giant’s decision to ban one of its most popular and powerful users, President Trump, permanently from its social network.
Stock experts further anticipate such a move deprives the fast-rising tech brand of one of its best traffic-generators, as well as risking alienating some people who share the opinion that tech brands like Twitter, Google, Facebook have become too powerful.
The tech brands are trying to stay away from accusations that they helped fuel the violence during the storming of the Capitol in Washington some days ago by a mob sympathetic to President’s Trump election loss.
Google, Facebook, Twitter stocks drop, investors ponder if big techs have become too powerful
Some powerful politicians have publicly decried the role these tech brands are having in censoring speeches.
Leading U.S tech stocks including Facebook, Apple, Twitter, Amazon, and Google experienced record sell-offs on growing global sentiments that big tech companies are getting out of control.
Such macros weighed heavily on these stocks as evidenced in Monday’s trading session performance for these tech stocks.
At the end of Monday’s trading session,
- Twitter lost about 6.41%
- Facebook down by 4.01%
- Apple dropped 2.32%
- Google (Alphabet) fell by 2.31%
- Amazon down by 2.15%
Also, some powerful politicians publicly decried the role these tech brands are having on censoring speech, as senior lawmakers in France and Germany, including German Chancellor Angela Merkel, voiced their concerns.
The fall is largely attributed to record sell-offs from investors on account of these tech brands’ decision to permanently ban one of its most popular and powerful users, President Trump, and other leading voices from their social networks.
What this means
Stock experts further anticipate such a move could deprive fast-rising tech brands of one of their best traffic-generators, as well as risking alienating some people who share the opinion that tech brands like Twitter, Google, Facebook have become too powerful.
Milan Cutkovic, Market Analyst at Axi, in a note to Nairametrics, spoke on the prevailing macros disrupting U.S stocks at least for the near term.
- “Fears of a global trade war have weighed multiple times on markets during the past few years. While concerns remain, the risk of trade tensions escalating has declined with Biden entering the White House soon.
- “While the US-China relations will remain complex, they could warm up somewhat after four turbulent years. Meanwhile, tech giants, Facebook and Twitter, have found themselves in a political crossfire by blocking US President Trump from their platform, which also weighed on the NASDAQ index.”
What to expect: The question of whether big tech has become too powerful is likely to lead to some heated discussions in the coming weeks.
Gold prices drop over strong U.S dollar
Spot gold dropped as much as 0.7% to $1,836.30 an ounce at the Asian trading session
Gold extended its largest drop in two months amid a strong dollar, as metal traders weigh President-elect Joe Biden’s pledge on his strategy in helping the world’s largest economy.
Spot gold dropped as much as 0.7% to $1,836.30 an ounce at the Asian trading session.
What this means: The rebound seen lately in the U.S dollar has helped diminish appetite for the precious metal with the U.S dollar rising, as global investors move from stocks to the more risk-averse asset. A stronger U.S dollar makes the yellow metal more expensive for holders in other major currencies.
Gold’s previous gains in Q4 2020 are getting overturned as a surge in U.S Treasury yields soften the appeal of the non-interest-bearing asset (gold).
Also, as COVID-19 vaccines get rolled out, global investors are weighing up the safe haven’s asset prospects for this year, amid reports that more massive support is on the way, which could help gold bugs in keeping prices above $1,850/ounce.
Stephen Innes, Chief Global Market Strategist at Axi, in an explanatory note to Nairametrics hinted at the fundamentals weighing hard on the precious metal;
“The US dollar’s recent gains, higher yields, and the equities rally is keeping gold on the defensive.
“The gold market spends most of Friday aggressively trimming longs with little support down until $1825/oz.
“Naturally, stop-loss selling on the way down as buying interest from the real money community has lacked in any meaningful way this year which runs counter to seasonal norms.”
Bottom line: The sell set-up from a technical and fundamental perspective hit gold like a ton of bricks at its last trading session when the yellow metal sliced like a hot knife through butter at the $1900 support level.
Elon Musk’s Tesla now worth $834 billion, bigger than Facebook
Tesla stock rallied more than 7%, bringing its market value to $834 billion. while Facebook closed at a market capitalization of $762 billion.
Fast-rising electric vehicle company, Tesla recently surpassed Facebook by market capitalization at the most recent trading session.
Such surge places Elon Musk’s automobile company as the fifth-biggest company in the U.S stock market index when considering the share classes of Alphabet. It is now just behind Apple, Microsoft, Amazon, and Alphabet.
What you should know:
- About a fifth of the car company’s shares is presently owned by the Chief Executive, Elon Musk, and other insiders.
- Elon Musk is now worth $209 billion. It’s important to note that the fastest rising billionaire keeps 8.9% of his wealth ($18.7 billion) in private assets and most of his wealth comes from Tesla, the most valuable car company which he founded over a decade ago.
- Elon Musk’s Tesla holdings are presently worth $150 billion.
- Stock experts anticipate a Democratic-controlled U.S Senate is bullish for Tesla, on the bias that there would be more pro-renewable investments at least for the next few years.
The electric car maker shares gained nearly 25% this week, far outperforming the S&P 500 and Dow Jones Industrial Average, which rallied by 1.8% and 1.6% for the week, respectively.
Tesla’s stock was in part helped by recent reports revealing the Democrats will gain control of the U.S. Senate after runoff elections in Georgia some days back.
Tesla has gained more than 24,000% since its 2010 initial public offering, including a 5-for-1 stock split in 2020.