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Facebook has lost $100B in 10 days and now advertisers are pulling out

business.financialpost.com

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Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#81

Post by brailsafe »

nugi wrote: post #13

This 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.

While I'm not top talent, and haven't been pursued by Facebook, I've always wondered why anyone would want to be associated with them. Other than as a status symbol in tech. I've never thought of them as anything less than a reprehensible company.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#82

Post by chrischen »

bad_good_guy wrote: post #71
chrischen wrote: post #68

Earlier quoted context omitted.

Yes, Facebook's current network is fairly strong, but you shouldn't look to where the masses currently are, you should look to where the trendsetters, the young, and the people in the know—where they are. These people are ahead of the curve, and the signs they are emitting is that Facebook is not serving their interests and needs. Young people don't want to use facebook because it forces you to interact with everyone…

Those people are on Instagram and WhatsApp...

> "(yes I know facebook owns this, but it's not facebook)"

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#83

Post by liquidise »

bitxbit wrote: post #45
jlmorton wrote: post #7

In 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.

Market has been choppy since February but FB moving down will bring other stocks down with it. Google was down over the same period BECAUSE of Facebook. Facebook is very much a bellwether company like it or not.

> Google was down over the same period BECAUSE of Facebook

This feels counter-intuitive to me as these are the major players in online advertising. A facebook exodus would feel like a positive for google's primary revenue driver. Why is the inverse effect true?

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#84

Post by tammer »

gonehome wrote: post #35
nugi wrote: post #13

This 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.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

Let's not forget that Facebook's network is actually a virtual one. The real social graph is independent of any virtualization provider.

Which is why all it will take is a compelling competitor to start the great migration. This is sort of the corollary to the network effect — as soon as there is a better alternative that people really move to, a vast amount of people will move spontaneously.

Imagine if Instagram started right now. Do you think they would accept any offer to be bought by Facebook?

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#85

Post by [deleted] »

gonehome wrote: post #35
nugi wrote: post #13

This 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.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

[deleted]

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#86

Post by kardos »

eggpy wrote: post #77
panarky wrote: post #56

Earlier quoted context omitted.

No, Facebook isn't going to die tomorrow. It'll still be around 5 years from now. After all, even AOL is still clinging to life. But their valuation depends on extrapolating today's growth and cash flow into the future. So even a slight slowdown in their growth rate or small reduction in margins can have a magnified effect on the company's valuation. Since expectations of higher future valuation drives high compensat…

Average Return Per User?

Revenue

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#87

Post by confounded »

juicy-fruit wrote: post #25
nugi wrote: post #13

This 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.

>Less top talent will want to be associated with facebook How certain is this? Whether you like what Facebook does or not, you can't deny their engineering talent is top tier. I don't even use Facebook but I'd still want to work there just to work with the people there and the environment. Companies like Facebook and Google are pretty engineer friendly, more so than other companies. I don't think this event will be t…

'Top talent' generally have a lot of options, and there are plenty of companies in the Bay Area which have an engineer-friendly environment. Street-cred matters a lot more than you might think.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#88

Post by jarjoura »

It's too easy for some of you to get excited about one giant corporation taking a rather public beating. The anti-facebook tribe is strong in the Hacker News community.

Plus, what SV company wasn't a free-for-all of user data in 2012-2013? I don't know if any of you remember the Path app's lawsuit that triggered Apple's lockdown of API permissions. Apple, who suddenly got religion about privacy, but they too learned from their mistakes.

Anyway, I'm not here to argue in favor of FB, but the stock going down is pretty self perpetuated right now. It's algorithmically triggered in response to bad news in the press, that then generates more bad press like this and so on. I'm not sure where the bottom will be here, but I'm pretty sure it'll reverse course soon enough.

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#89

Post by domevent »

gonehome wrote: post #35
nugi wrote: post #13

This 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.

Oh please - the overreaction from this is ridiculous. I'm buying FB call options. Facebook's network effect is extremely strong - this is also not even including their other assets (Instagram, Whatsapp, Oculus). The API access was in violation of terms of service and the ability to access data through friends via the FB graph has already been closed.

There’s a real disconnect I’m noticing, which comes with a kind of script here. “Nobody cares,” “I’m buying their stock,” “It will all blow over,” “No one outside of our bubble cares.”

I suspect the same people will be saying the same thing next week when another $50b have been shed, another scandal or two has come to light, and more users and advertisers flee the platform. I wonder at what point it’s going to sink in that between Trump’s election and a general backlash against tech, this is the tip of a very large iceberg?

Re: Facebook has lost $100B in 10 days and now advertisers are pulling out

#90

Post by domevent »

jarjoura wrote: post #88

It's too easy for some of you to get excited about one giant corporation taking a rather public beating. The anti-facebook tribe is strong in the Hacker News community. Plus, what SV company wasn't a free-for-all of user data in 2012-2013? I don't know if any of you remember the Path app's lawsuit that triggered Apple's lockdown of API permissions. Apple, who suddenly got religion about privacy, but they too learned…

Anyway, I'm not here to argue in favor of FB

You’re just doing a really great impression of someone who is? My initial reaction was an unrealistic belief that you and others singing a similar tune work for FB, but I doubt that. I think it’s a very rational fear that FB is the first domino to fall, possibly along with Uber. Fear and self-interest, and the simple desire not to see your industry facing a prolonged public backlash ending in regulation makes more sense as a motive.

Is that about right?

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