Facebook’s stock took a dive this week, leading to a shake in the market. PJ Media reports:
Facebook stocks plunged precipitously on Thursday after the company’s earnings report showed they missed expectations on revenue and that the social media platform’s monthly users are down significantly. All of this comes in the wake of ongoing scandals, including charges of data misuse and anti-conservative bias.
“During a conference call Wednesday, Facebook Chief Financial Officer David Wehner predicted bad news for the second half, and the company’s shares immediately began a drastic retreat in the extended session,” Marketwatch reported on Thursday.
According to Reuters, “Facebook shares dived 18.6 percent, set for its biggest one-day percentage drop ever, after the social media giant said profit margins would plummet for years due to costs to improve privacy safeguards and slowing usage in its big advertising markets.”
But stock prices aren’t the only problems facing the beleaguered social media behemoth. The company is facing massive fines and possible government intervention as lawsuits pile up in the U.S. and around the world. In fact, Facebook is facing more than three dozen class-action lawsuits over Cambridge Analytica privacy breaches alone. The looming legal nightmare is so significant that the company felt the need to include a note about it in their quarterly SEC report[…].
Whether this will shake Facebook’s monopoly in the social media space remains to be seen.