Market Overview

Twitter's Stock Falls And Nobody Really Knows Why

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Twitter's Stock Falls And Nobody Really Knows Why

Shares of Twitter Inc. (NYSE: TWTR) plummeted mysteriously Thursday morning.

What Happened

Shares of the social media company dropped more than 7 percent, accounting for the stock’s lowest point since Oct. 24. With no apparent news explaining the move, some have referred to the influence of Fox News’ apparent “boycott” of Twitter.

The recent sell-off may be related to a recent POLITICO article outlining Fox News’ aversion to the platform, Wedbush analysts told Benzinga. Both Fox Business and Fox News haven't tweeted since Nov. 8.

Why It’s Important

President Donald Trump is an active user of the Twitter platform and has been known for expressing open and sometimes controversial opinions through the medium. The existing tensions continued to rise following an investigation of Twitter CEO Jack Dorsey, and whether he “arbitrarily censored content published by the site,” according to a Tuesday report from The Federalist, a conservative news publication.

On Wednesday, POLITICO published an article scrutinizing Fox News, its apparent boycott of Twitter and its promotion of Fox Nation. Since then, the stock has fallen.

Despite the compelling reasoning, Victor Anthony of Aegis Capital thinks otherwise.

“Looks like it is being blamed on the Fox News boycott, which has been public knowledge for sometime. So odd that it is hitting the stock," Anthony told Benzinga.

At time of publication, Twitter was trading down about 6.2 percent to $30.69

Related Links:

MKM Partners: Twitter Has Potential For 30-40% Annual Returns

Citron: Twitter Shares Could Hit '$52 Within 52 Weeks'

Posted-In: AegisAnalyst Color News Short Sellers Top Stories Exclusives Movers Trading Ideas Best of Benzinga

 

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