Facebook share price down 3% after week of negative news

The social media app's stock is down after several negative events.

Facebook share price is down after a week of bad news for the corporation. The tech company’s stock fell 3% after major negative events.

Why is Facebook share price down?

Four major events all took place to bring down Facebook’s share price. Two key executives left the organisation. Facebook CEO, Mark Zuckerberg, wrote in a blog post that Chris Cox, and Chris Daniels, were leaving the company after years at the WhatsApp site.

Two major executives leave

‘While it is sad to lose such great people, this also creates opportunities for more great leaders who are energized about the path ahead to take on new and bigger roles,' wrote Zuckerberg.

Though he didn’t report why they left, The New York Times reports that Cox and Daniels left after disagreeing with Zuckerberg about Facebook’s new direction.

Day-long outage hurts Facebook

In addition to the loss of talent, Facebook recently had a day-long outage in which visitors were unable to access the site. The social media app released a statement addressing the issue.

‘We have resolved the issues, and our systems have been recovering over the last few hours. We are very sorry for the inconvenience and we appreciate everyone’s patience,’ said Facebook in a statement.

New Zealand massacre puts Facebook in spotlight

When the service was restored, the app livestreamed a terrorist attack against a mosque that killed 49 people. The attacker livestreamed the massacre on the site and though the company took down the video, critics say it acted too slowly.

Mia Garlick, Facebook’s director of policy for Australia and New Zealand, defended Facebook’s actions.

‘New Zealand Police alerted us to a video on Facebook shortly after the livestream commenced and we quickly removed both the shooter's Facebook and Instagram accounts and the video,’ said Garlick in a statement.

Facebook under investigation in US

On top of all those issues, there are also reports of Facebook being under investigation by the US Department of Justice related to the Cambridge Analytica data-mining scandal of 2018.

‘It has already been reported that there are ongoing federal investigations, including by the Department of Justice. We are cooperating with investigators and take those probes seriously. We’ve provided public testimony, answered questions, and pledged that we will continue to do so,’ said Facebook.

How can Facebook fix its problems?

Facebook has survived bad publicity before, and should weather this latest storm. Facebook has pledged to protect users’ privacy better, have more efficient service, and to take down offensive videos faster in the future. It remains to be seen if these changes will reassure investors about the social media company’s stock.

IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.

Please see important Research Disclaimer.

Seize a share opportunity today

Go long or short on thousands of international stocks.

  • Increase your market exposure with leverage
  • Get spreads from just 0.1% on major global shares
  • Trade CFDs straight into order books with direct market access

Live prices on most popular markets

  • Forex
  • Shares
  • Indices
Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Sell
Buy
Updated
Change

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.

Sell
Buy
Updated
Change
-
-
-
-
-
-
-
-
-
-
-
-
China 300
-
-
-
-

Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.

The Momentum Report

Get the week’s momentum report sent directly to your inbox every Monday for FREE. The Week Ahead gives you a full calendar of upcoming key events to monitor in the coming week, as well as commentary and insight from our expert analysts on the major indices to watch.

For more info on how we might use your data, see our privacy notice and access policy and privacy webpage.

You might be interested in…

Find out what charges your trades could incur with our transparent fee structure.

Discover why so many clients choose us, and what makes us a world-leading provider of CFDs.

Stay on top of upcoming market-moving events with our customisable economic calendar.