- Twitter shares fell as much as 4.22% Thursday.
- Social media stocks have been getting whacked following news of a massive data breach at Facebook.
- The breach is prompting concerns about future data regulation, that could hurt social media stocks.
- Watch Twitter stock in real time here.
Twitter shares are sliding Thursday, down 3.33%, as social media stocks remain in the cross hairs following news of a massive data breach at Facebook. A close below $US31.32 would be the lowest since February 12.
Twitter also had its own, unrelated problem this week. The Israeli government complained that Twitter had been ignoring its requests to remove content that suggested violence against the state, which hurt the stock on that news.
The Facebook data breach, which sent social media stocks reeling, has raised two main concerns for investors. The first being that users may start deleting their social media accounts. The second concern is regarding regulation and its potential impact on advertising dollars for these companies.
“General Data Protection Regulation could be slightly more problematic than Facebook implied in recent commentary,” Barclays analyst Ross Sandler said in a recent note to clients.
The GDPR is a European Union regulation that protects internet users’ data privacy. The note said that any further regulations could possibly put a small dent into social media platforms’ users numbers and the advertising dollars they collect.
Twitter shares are down more than 11% this week. They’re up 1% this year.