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Facebook Has Lost About $100 Billion in Market Cap in 10 Days
Facebook has lost roughly $100 billion in market capital over the last 10 days and is on pace for its worst month since 2012, Bloomberg reports.
The staggering drop in market cap comes as the social networking giant and its CEO Mark Zuckerberg face the most significant crisis in the company’s history, following the revelation that data had been stolen from roughly 50 million Facebook users by voter-profiling company Cambridge Analytica.
Facebook’s shares dropped as much as 6.5 percent during New York trading on Monday.
Colin Sebastian, an analyst at Robert W. Baird & Co., wrote that the firm’s latest social media survey indicates “some moderation in Facebook usage,” and notes potential for brands and small and medium-sized businesses to “pause some Facebook campaigns until headlines subside.” He lowered his price target to $210 from $225 while saying shares remain attractive for investors with medium to long-term time horizons.
Sebastian does believe that any pullback from advertisers on Facebook’s platform will be temporary “as there are few channels available that can match Facebook’s return on ad spend,” according to Bloomberg. The company’s stock maintains 44 buy ratings and only two sell ratings.
With the company facing backlash from users and from regulators on both sides of the Atlantic, Zuckerberg launched an ad blitz over the weekend, taking “his mea-culpa tour to the pages of the New York Times, Washington Post, Wall Street Journal, and six U.K. papers on Sunday, apologizing in a full-page ad for the company’s ‘breach of trust'” with users’ data, as New York magazine notes.
— Brian Stelter (@brianstelter) March 25, 2018
“We have a responsibility to protect your data, and if we can’t then we don’t deserve to serve you,” Zuckerberg said in a Facebook post addressing the controversy, which he essentially repeated in his ad. “I’ve been working to understand exactly what happened and how to make sure this doesn’t happen again.”
Photo: Getty iStock