Tuesday’s Headlines: Trump Ban Sends Twitter Down 6%

Tuesday’s Headlines: Trump Ban Sends Twitter Down 6%

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Lemonade (LMND) +14.0%

GoPro (GPRO) +13.5%

Datadog (DDOG) +4.3%

Etsy (ETSY) +4.2%

iRobot (IRBT) +3.7%

Moving Down ⬇️

Tesla Motors (TSLA) -7.8%

Boston Beer Co. (SAM) -6.7%

Square (SQ) -6.6%

Twitter (TWTR) -6.4%

Eventbrite (EB) -4.8%

1. Twitter (TWTR) shares fell more than 6% yesterday following its banning of President Trump's account “due to the risk of further incitement of violence.” It’s likely that Twitter’s stock fell due to concern among investors over the future regulation of social networks and the possibility of future boycotts of the platform among those who see the ban as a way to silence a major conservative voice. The strict suspension may hurt Twitter’s user engagement but it might appeal to advertisers who agree with the ban. Other social media companies also traded in the red after suspending Trump, with Facebook (FB) closing 4% lower yesterday, whilst Snap (SNAP) and Pinterest (PINS) shares also fell on Monday morning before recovering. Read the full story here

2. U.S. equity futures sank yesterday as investors grow worried about Wall Street's lofty stock valuations. The Dow Jones (DIA) lost almost 90 points yesterday, whilst the S&P (VOO) dipped nearly 0.66% and the Nasdaq (QQQ) slid over 1%. Furthermore, Tesla had its worst day since September and closed down 7.8% on Monday. Stocks are coming off a strong peak as last week's gains brought all three major averages to record highs, seemingly shrugging off the violence at the U.S. Capitol. However, the attack has resulted in the Democrats introduced an article of impeachment against Trump for inciting the attack in Washington. More on this story here.

3. In what was some sour news for Lemonade (LMND) investors, the company announced a secondary offering of 3 million shares yesterday. With underwriters holding an option to sell an additional 678,647 shares depending on investor demand, Lemonade stock fell after the bell over concerns about this dilution of existing holdings. Lemonade also revealed that insiders and early investors would also be selling just over 1.5 million shares, which will reduce insider ownership in the company down to about 36.5%. While this might seem like a big concern for shareholders, it's not uncommon to see early investors cash in once the lock-up period on a stock has expired — especially considering the company’s sky-high share price. See the full story here


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