Facebook’s stock price has had a rollercoaster year driven by an ad boycott, censorship controversies, and blockbuster results. Here are its biggest moves in 2020.
- Facebook shares are seeing a steady fall as moreadvertising brands join a boycott movement against thesocial-media giant.
- The tech giant was one among the big few to performcomparatively well despite the storm of the pandemic, but itsstock now tells us a different story.
- Markets Insider rounded up some of Facebook’s big stockmoves so far this year.
- VisitBusiness Insider’s homepage for more stories.
As the poster child of Silicon Valley success, Facebook is veryrarely a company that avoids the limelight, and 2020 has been nodifferent.
In recent weeks, hundreds of brands have boycotted advertisementcollaborations on the social-media platform over its refusal tocensor or remove offensive posts by President Trump aboutprotests in the wake of George Floyd’s death at the hands ofpolice in Minneapolis.
In a prominent example of one such post, Trump wrote in referenceto protests in Minneapolis that “when the looting starts, theshooting starts.”
Responding to Zuckerberg’s inaction, over 400 brands including Coca-Cola, Starbucks, Unilever, Verizon,Ford, Ben & Jerry’s, and The North Face halted their paidadvertising on Facebook – some of them just for the month ofJuly.
Facebook shares slid 8.3% last week as advertisers werejoining the boycott against the platform.
That move, however, was not the only big shift in the company’sstock price this year.
Markets Insider rounded up big stock moves for thecompany so far in 2020.
March 9: The pandemic strikes and hits the company’s share price
On March 9, Facebook shares fell as much as 8.8% likely driven bya sharp plunge in the overall market from uncertainty related tothe coronavirus.
Aside from that, a brewing oil price war between Saudi Arabia andRussia meant that demand for its advertising products coulddiminish significantly.
March 24: Advertising dwindles but Facebook sees a huge spike in platform activity
On March 24, Facebook said it had seen large spikes in activity across messagingand Facebook news feeds, but also said: “We don’t monetize manyof the services where we’re seeing increased engagement, andwe’ve seen a weakening in our ads business in countries takingaggressive actions to reduce the spread of COVID-19.”
The company declined to say how much its revenue would be hurt.
Facebook’s shares dropped as much as 13.3%.
April 29: Shrugging off coronavirus to report ‘stability’ in ad revenue
On April 29, Facebook’s stock soared as much as 16% after thecompany reported its first-quarter earnings.
Despite a “significant reduction” in demand for ads, its revenuerose 26% year-on-year to about $15 billion. Its digital adsmarket took a major hit in light of the coronavirus pandemic. Thecompany said it would not provide full-year guidance.
Facebook’s role in connecting people became even more notablethis year and was one of the companies able to withstand earlylosses amid the pandemic.
May 20: Facebook’s new e-commerce feature: Shops
On May 20, the company’s shares reached an all-time high of$230.75 rising as much as 6.4% after it announced its newe-commerce feature, Facebook Shops.
Adding more to its plate, the firm saidits new feature on both Facebook and Instagram would act asshopfronts for businesses to list their goods.
Facebook was known to operate as a purely advertising-focusedbusiness, but the new e-commerce feature boosts its ability tocompete with other established online shopping platforms likeAmazon, eBay, and Etsy.
May 30: Facebook employee outrage over Trump’s George Floyd post
Reuters/Drew Angerer/Getty Images
On May 30, CEO Mark Zuckerberg wrote in a postthat the social media platform would not take down PresidentTrump’s post about the George Floyd protests taking place inMinneapolis as it was “warning about the possibility that lootingcould lead to violence.”
About 400 employees staged a virtual walkout in reaction, and atleast one employee resigned in protest. Zuckerberg had told Trump that the post put Facebook in adifficult position.
At this stage, shares of the company saw major turbulence.
June 26: Facebook ad boycott by over 400 brands
On June 26, Facebook’s shares fell 8% as multiple advertisersannounced boycotts of the social network.
Over 400 brands including Starbucks, PepsiCo, Coca-Cola, Diageo,Unilever, and Verizon all halted advertising on the platform asthey called on the company to do more to combat the spread of misinformation and hatespeech on the platform.
In a statement, the vice president of Facebook’s global businessgroup said: “We deeply respect any brand’s decision and remainfocused on the important work of removing hate speech andproviding critical voting information. Our conversations withmarketers and civil rights organizations are about how, together,we can be a force for good.”
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