Is it crazy to consider investing in their stocks soon-ish. I totally hate the company but if this is global-minimum i can make some cash pretty easy. I'm relying on the premise that most users will continue to user the site and that this is a short term media frenzy similar to youtube advertiser fiasco.
Facebook has lost $100B in 10 days and now advertisers are pulling out
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Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#12Good, I hope we see a sleeping giants-style shaming of advertisers who financially support Facebook
Ironically many of the sleeping giants that could tip the scales were already pulling out. Case in point: Proctor and Gamble (2016) https://www.wsj.com/articles/p-g-to-scale-back-targeted-face...
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#13This is the beginning of the Big Churn. Less top talent will want to be associated with facebook. Already even a few more privacy clueless friends family members are deleting their accounts. Adverts were always so low yeild, and fb pages 'because we need one'. Now that is all changing due to perception. The FTC, stocks falling, are further indicatuons of falling trust. And all business is built on trust.
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#14Perhaps some good will come out of all this.
Maybe in the future, when some PHB asks development to add a questionable data gathering function to a platform they can say, "Remember Facebook?"
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#15Good, I hope we see a sleeping giants-style shaming of advertisers who financially support Facebook
Ironically many of the sleeping giants that could tip the scales were already pulling out. Case in point: Proctor and Gamble (2016) https://www.wsj.com/articles/p-g-to-scale-back-targeted-face...
Extra-ironically, look at the opening line there:
> Procter & Gamble Co. PG 0.66% , the biggest advertising spender in the world, will move away from ads on Facebook that target specific consumers, concluding that the practice has limited effectiveness.
More-and-more-specialized online display advertising rarely delivers as (heh) advertised on any platform.
But on the other hand, the bit you leave out includes both that they weren't cutting their FB budget, and that they'd found some areas where it works better:
> Mr. Pritchard said P&G won’t cut back on Facebook spending and will employ targeted ads where it makes sense, such as pitching diapers to expectant mothers.
So the real question is: were these political campaigns the useless sort of micro-targeting, or the effective kind?
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#16Facebook didnt loose $100B in 10 days: it's market value dropped in response to bad news. Stocks go up and down all the time on companies that remain around a long time. It's still making piles of money. Its users have a huge, switching cost to block a transition, too.
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#17Could this spark a small tech bubble burst?
Will non-tech people be fed up with their data being abused by tech/ad companies? If this trend goes viral (ironic, eh?) it could mean less ad money. Advertising has had it really good compared to older days of TV and radio with targeted online communities and data about them.
Maybe this just sparks less VC investment towards freemium products?
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#18In other words, FB has done somewhat worse than the NASDAQ, and about the same as GOOG over the same time period. Best not to take broad market movements and try to ascribe specific market expectations to individual companies.
Except NAZDAQ rallied today, so did Google. Facebook did not. Google's decline was part of the halo effect cast over big data techs as a result of the facebook debacle, and indexes in general were down over fears of pending trade wars with China that have now eased slightly. Facebook's decline continued despite these other factors getting some relief. Its issues are all its own at the moment.
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#19What's interesting for me is that I finally deleted my account. I never used it anyway but now I feel empowered to say "I don't have an FB account" and that's ok.
I think this is a sea change - there will never again be this dominant of a social network imho. From now on the space will be fractured into niches (AngelList, LinkedIn, NextDoor, etc...).
Re: Facebook has lost $100B in 10 days and now advertisers are pulling out
#20In other words, FB has done somewhat worse than the NASDAQ, and about the same as GOOG over the same time period. Best not to take broad market movements and try to ascribe specific market expectations to individual companies.
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