Facebook Growing Pains, Will it end?

Since the spring time when over Facebook accounts were hacked due to Cambridge Analytica, besides apologizing for it, very little was done to gain the confidence of their users.

Less ads in the news feeds, meaning more friends or interests but that hasn’t been the case, as Facebooks algorithm changes meant seeing less of it, which makes users look elsewhere, as Instagram or Twitter.

Zuckerberg’s apologizing to US Congress and the World didn’t really affect their stock prices at that time, with a little dip the stock rose again.

Here are some stock point to take note:

 

  • March 15, 2018 stock price was at $185.09 and fell to $152.22 on March 27, 2018.
  • Since the end of July, its stock dropped under 20% from $217.50 to $171.06 its current low.
  • This low is still not as low as it was back in March 2018. This stood its own record of any stock dropping so quickly in the history of the stock market.
  • This time last year, Facebook stock was at creeping up in the $160s

 

And at the same time the end of March 2018 came with it GDPR changes on the heels of the Cambridge Analytica fallout.

 

Now, fast forward to the end of the second quarter, Facebook’s stock was set back with the largest drop, as mentioned above, showing consumers are not confident with the platform.

 

Slowed user growth and declining daily active users and Facebook wanting users to engage in meaningful relations on the platform, results in declining revenue.

 

 

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Their API is rendered useless among traffic- pushers as data is no longer accessible, Facebook’s value has gone down on the whole. Yet, there is one bright spot for them, its Instagram.

Instagram results in 5% of overall revenue and looks to going strong despite user’s protesting Facebook, they’re moving onto Instagram platform instead. Instagram has a growing forecast

Even with Apple’s latest evaluation of being the first $1trillion company, Facebook is not slowing down.

They are making moves with Instagram continuing to be a bright spot as a revenue driver, they’re looking towards their messenger platforms with Facebook Messenger and WhatsApp to offer transaction payment system within it. There are now reports of Facebook discussing with the big banks using their chat platform  for non-transaction chatting service. Facebook will not have financial data as rumors swirl; spokeswoman Elisabeth Diana from Facebook:

Like many online companies with commerce businesses, we partner with banks and credit card companies to offer services like customer chat or account management.

 

She continues on to say:

 

We don’t use purchase data from banks or credit card companies for ads. We also don’t have special relationships, partnerships, or contracts with banks or credit card companies to use their customers’ purchase data for ads.

 

 

Again this comes on the heels as Italy’s biggest bank, UniCredit SpA as they stopped advertising with Facebook. Which does not seem to be connected. 

What else is on the way?

Facebook has stopped cannabis and marijuana from appearing in their search results. As of now, Instagram cannabis accounts are still functioning.

 

Also, Facebook followed suit with other social media platforms as Apple podcast Spotify podcast, Youtube channel, to ban Info Wars star Alex Jones by going against policy by producing hate speech on their platforms.

We’ll be waiting to see what’s more to come as Facebook and its business model as it goes through a digital rebirth or is just adolescence?

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