Major news in the financial world saw Twitter stocks fall by as much as 4% in after-hours trading. This sent shockwaves through the financial sector and left many wondering what had prompted the drop. It is also forcing those who hold Twitter shares to consider what their next move should be and whether the price will recover as the week moves on.
What Happened To Prompt The Twitter Price Drop?
The cause of this recent price slide appears to be a cyber-attack on the Twitter platform itself. Many big-name celebrity accounts had been compromised by hackers.
This had seen links to a Bitcoin-related scam placed on these accounts, which tricked many people who followed them.
The major names who were targeted via Twitter include Elon Musk, Warren Buffet, Jeff Bezos and Kanye West. Although Twitter quickly spotted the scam, it is thought that around $100,000 in Bitcoin had been sent by people to the scam link.
An anti-semitic rant by UK grime artist Wiley, also harmed Twitter, with many feeling the platform was too slow to act on the offensive tweets.
Twitter’s Share Price Drops As A Result
Although the social media giant reacted quickly to deal with the compromised accounts, the damage had been done to its share price.
This saw a slide of up to 4% after-hours on 15th July 2020 and saw unwelcome news delivered to investors on the morning of the 16th July 2020.
The more recent issue prompted prominent Jewish celebrities to endorse a twitter boycott, extending a difficult period for the company.
What Next For Twitter Stocks?
Many people are demanding answers on both issues. The hack exposed accounts flagged as ‘official’, leaving users with their confidence shattered. If official sources can also be hacked so easily, is there any information that can be trusted on the platform?
The failure to deal with offensive tweets may end up being equally damaging. Many feel that that social media companies are almost happy to tolerate certain levels of hate speech, as long as their brands remain prominent.
There has been little visible action on removing offensive material quickly and this is fast becoming an issue for both the public, and governments around the world.