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Twitter, Snapchat Stocks Drop After Facebook Whistleblower's Accusations

Shares of Twitter and Snapchat fell after Facebook's former product manager accused the platform of repeatedly prioritizing company profit over hate speech.

Shares of social media platforms Twitter  (TWTR) - Get Twitter, Inc. Report and Snapchat  (SNAP) - Get Snap, Inc. Class A Report fell Monday after a Facebook  (FB) - Get Facebook, Inc. Class A Report whistleblower's accusations that the company prioritizes profit over hate speech turned investors more wary of other tech platforms.

Shares of Twitter on Monday fell 5.9% to close at $58.39 while Snapchat dropped 5.34% to end at $71.23. Shares of Facebook fell 4.89% to $326.23.

Also on Monday, Facebook and its family of apps were all down in a global outage from around noon Eastern.

Facebook's former product manager, Frances Haugen, in an interview on CBS's "60 Minutes" on Sunday night said, "There were conflicts of interest between what was good for the public and what was good for Facebook. And Facebook over and over again chose to optimize for its own interests like making more money."

Haugen's legal counsel has reportedly filed at least eight complaints about Facebook with the Securities and Exchange Commission.

Facebook's Andy Stone told the Wall Street Journal that, "To suggest we encourage bad content and do nothing is just not true.”

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Haugen will testify before a Senate subcommittee on Tuesday in a hearing titled "Protecting Kids Online," about the company's research into Instagram's effect on young users.

Last week, Facebook paused work on its photo-and-video-sharing Instagram app for a project aimed at kids to do more research.

How the Long Tech Rally Evolved

There has been a steady drumbeat of negative headlines against Facebook over the last few weeks that have hurt its stock. First, The Journal reported that internal documents showed the social networking platform knew about the app's negative effects on young girls.

Findings of this research were reportedly cited in a presentation given last year to CEO Mark Zuckerberg, according to The Journal.

A second investigation by The Journal showed that anti-vaccine activists used Facebook to undermine the social-media giant's vaccine-promotion efforts.

Facebook failed to stop users from flooding the platform with what the company's researchers described as “cesspools of anti-vaccine comments."