Trump Signs Executive Order Targeting Twitter

Trump Signs Executive Order Targeting Twitter
May 29, 2020

 

Twitter, Inc. (NYSE: TWTR) is facing the heat of the White House as US President Donald Trump is on course to sign an executive order focused on social media firms, after Twitter started fact-checking tweets, including the ones from Trump. The executive order is intended to crack down on online platforms such as Google, Twitter, and Facebook, promising “a Big Day for Social Media and FAIRNESS!” Following the news, the shares of Twitter lost $1.47 or 4.45% to close at $31.60.

The San Francisco, California-based company on Thursday included unique fact-checking labels to several hundred tweets, even when the US administration was busy drafting an executive order to curb the legal safeguards that protect social media firms from being liable for the content posted on their platforms.

For the first time, on Tuesday, Twitter had attached fact-checking labels to two of Trump’s tweets about mail-based ballots, contradicting their correctness. In response, Trump alleged Twitter of strangulating free speech and asserted that he would put an end to the obstruction.

The order would enable the Federal Communications Commission to prescribe guidelines on timing and method of removing content from social media platforms, while maintaining accountability protection offered to the social media platforms as per Section 230 of the Communications Decency Act.

Notably, the order would specifically name Twitter and motivate the Federal Trade Commission to take measures against enterprises that are involved in the “deceptive” communication process. The order will also establish a working team of state attorneys to examine appropriate state laws.

Trump issued the following tweet with regard to the executive order aimed at social media companies: “This will be a Big Day for Social Media and FAIRNESS!”

Commenting on the development, the Democratic presidential candidate Joe Biden opined that Section 230 should be “revoked.”

Twitter CEO Jack Dorsey justified the company’s initiatives by stating that the fact-checking process was “to connect the dots of conflicting statements and show the information in dispute so people can judge for themselves.”

However, Facebook CEO Mark Zuckerberg opined that social media platform providers should not act as “arbitrators of truth.”

The war of words between Trump and Twitter indicates that the outrage against large technology enterprises, which had fallen back in the early stages of the pandemic, is now back in full swing. Notably, the Justice Department has recently hinted that it is working on an antitrust lawsuit against Google.

Jon Berroya, CEO of the Internet Association, a team fighting on behalf of major tech enterprises, said, “This proposed executive order seems designed to punish a handful of companies for perceived slights. It stands to undermine a variety of government efforts to protect public safety and spread critical information online through social media and threatens the vibrancy of a core segment of our economy.”

At the time of writing this article, news reports have emerged that Trump has signed the executive order. The news of executive order restraining social media company’s liberty is anticipated to keep the stock of Twitter range-bound with slight bearish bias in the short-term.

The historical price chart indicates that the stock remains range-bound between 28 and 40. While the DI- leg of the ADX (average directional index) indicator is above the DI+ leg, the stock has closed below its 50-day moving average.

twtr - technical analysis - 29th May 2020

Disclaimer: Any financial trading analysis offered here is our opinion and is not intended as advice or direction for investors. We cannot guarantee the success of any trades made as a consequence of this article, and we encourage traders to incorporate a strong money management strategy to limit losses when they enter the markets. Please use this article as part of your own research before formulating strategies prior to trading.

Janine

Janine

Janine is our editor for related stock market news. Andrew and Janine will be focusing on providing the latest trends and where the next hit could be


Related Articles

Accenture Posts Mixed 4Q Results, Issues Weak FY 2019 EPS View

  Management and technology consulting service provider Accenture Plc (NYSE: ACN) reported fiscal 2019 fourth-quarter earnings that beat analysts’ estimates.

Citi Initiates Coverage of JnJ with ‘Buy’ Rating

  FMCG company Johnson & Johnson (JNJ: NYSE) drew the market’s attention yesterday after Citi analyst Joanne Wuensch began covering

Morgan Stanley Turns Bullish On Disney’s Streaming Service

  The shares of Walt Disney Company (DIS) recorded a new yearly high of $142.37 yesterday after Morgan Stanley analyst