It looks bad for Facebook right now. The network responded far too late to the many hateful comments and posts that arose after the riots in the United States. Bloomberg has researched how strongly this affects stocks.
Accordingly, the loss on Friday alone was estimated at $ 7.2 billion. Facebook’s stock has dropped over 8 percent, meaning Facebook’s market value has now become $ 56 billion lighter within a few hours. This downturn is likely to continue, according to a new report.
According to Bloomberg, Mark Zuckerberg’s assets shrank to around $ 82 billion in just a few days. Bloomberg also looked straight at the billionaire index. There, the 36-year-old Zuckerberg is now only in fourth place.
“Stop Hate for Profit”
After the advertising boycott “Stop Hate for Profit” more and more of the big corporations joined – among them Coca Cola, Honda, Verizon, and Unilever – smaller and smaller companies are thinking about doing the same as the big ones. There are said to be more than 100 companies that have joined the Facebook boycott to set an example. Facebook is currently considered a toxic environment, and not just for advertisements after it became clear how little the network cares about fake news and hate postings.
List of large companies that have placed advertising on Facebook:
- Ben & Jerry’s Homemade Inc.
- Coca-Cola Co.
- Diageo Plc
- Diamond Foundry Inc.
- Eileen Fisher Inc.
- Hershey Co.
- Honda Motor Co.
- Levi Strauss & Co.
- Patagonia Inc.
- The North Face
- Unilever Plc
- Upwork Inc.
- Verizon Communications Inc.
Facebook has meanwhile announced a few steps on how to increasingly take action against false and defamatory posts in the future. The whole thing is just an attempt to limit the damage, which seems to be of little use at the moment. The shareholders have lost confidence, the big advertising partners will certainly not reverse their decisions too quickly.
Manager at Research Snipers, RS-NEWS, Digital marketing enthusiast and industry professional in Digital Marketing, Social Media, Business News, and Technology News, with vast experience in the media industry, I have a keen interest in business technology, News breaking.