More than £ 60 billion the value of US technology titans was wiped out last night after US lawmakers declared it was the end of the Wild West & # 39; for social media.
The shares on Twitter, Facebook, Google, Snap, Netflix, Microsoft and Amazon fell when investors were concerned about the prospect of tighter regulation.
The sale will cause UK investors with money stuck in US technology giants through individual equity positions or funds exposed to the shares.
Shares on Twitter, Facebook, Google, Snap, Netflix, Microsoft and Amazon fell as investors worried about the prospect of tighter regulation
The fall in share prices began when Facebook chief Sheryl Sandberg and Twitter boss Jack Dorsey were questioned by the Senate Select Committee on Intelligence in Washington about their efforts to address election interference.
During the hearing, senators told executives that Silicon Valley would not be able to deal with mediation by countries like Iran and Russia alone, with some claiming that the only answer was tough new laws.
The Republican chairman of the committee, Richard Burr, told them: "We have learned how vulnerable social media is to corruption and abuse.
& # 39; The worst examples of this are absolutely horrifying and a threat to our democracy. Unfortunately, what I described as a vulnerability to national security remains unaddressed.
& # 39; It is clear that this problem does not disappear. & # 39;
Mark Warner, the highest democratic senator on the panel, said to them: "Each of you has come a long way in recognizing the threat. The bad news is that there is still a lot of work to be done.
& I am skeptical that you will eventually be able to face this challenge alone. The congress must take action here.
& # 39; The Wild West era on social media is coming to an end. & # 39;
Other members of the committee warned that user data held by the firm & # 39; s a & # 39; weapon of choice & # 39; can be for foreign opponents.
Sandberg responded to the criticism and admitted that Facebook was slow to respond to interference in the 2016 US presidential election.
But she insisted that the company had proactively banned users and deleted those suspicious laypeople.
In the meantime, Dorsey reacted to concerns about misinformation on Twitter and politicians' accusations that the platform disapproves of the right opinion.
He said: & # 39; Required changes will not be quick or easy. We commit ourselves to the people and this committee to do it openly. & # 39;
Google was also invited but rejected.
The hearing of the senate sent Twitter shares down by 6.1 percent and Facebook fell by 2.3 percent.
Netflix fell by 6.2 percent, Amazon lowered 2.2 percent and Microsoft lost 2.9 percent.
When the markets closed, more than $ 80 billion – or about £ 62 billion – was swept away from the value of US technology companies.
Tesla drives for a fall, says Goldman
The shares in Tesla fell back last night when founder Elon Musk (photo) was warned that the company is only worth half of what he values it.
The stock fell by no less than 4 percent at one point, to $ 277 – loss in the past month to 27 percent.
The slide came when Goldman Sachs warned that the shares would be worth $ 210 each – only half of the $ 420 that Musk said last month was willing to pay to take the company privately.
The warning was particularly creepy, because Musk had hired Goldman to advise him to buy the company back before he abandoned the plan.