On Wednesday, the top Executives of Facebook and Twitter defended their companies in the US Congress. They defended over the foreign bids to tilt politics. They defended the companies against what lawmakers see as a failure to combat continuing foreign efforts to influence U.S. politics. Shares Of Facebook & Twitter fell after they defended over foreign bids in US Congress.
Shares Of Facebook & Twitter fell 1.6% & 5.2% Respectively
Facebook (FB.O) fell 1.6% and Twitter (TWTR.N) 5.2%. Shares of other tech companies, including Alphabet (GOOGL.O) and Snap (SNAP.N), were also down.
Tigress Financial Partners analyst Ivan Feinseth stated that:
“Twitter does not have the broad number of revenue drivers that Facebook has as far as messenger and Instagram, nor does it have the development infrastructure for new applications the way Facebook does, so that’s why it is selling off more”
“Relatively small number of bad-faith actors were able to game Twitter to have an outsized impact”
Facebook Chief Operating Officer Sheryl Sandberg acknowledged to the Senate Intelligence Committee that the company was too slow to respond to Russian efforts to interfere in the 2016 U.S. election and general American political discourse, but insisted it is doing better.
Sandberg stated that:
“We have removed hundreds of pages and accounts involved in coordinated and inauthentic behaviour- meaning they misled others about who they were and what they are doing”
Prior to the hearing, President Donald Trump accused social media companies of interfering in the U.S. mid-term elections in an interview with the Daily Caller. Although he didn’t provide any evidence. The report gave no other details. The only thing that we noticed was the fall in the social media stocks. The shares of the companies fell instantly after defence in the US Congress.