Facebook's Scandal Woes Finally Affecting Their Wallet
Last week, Facebook’s Chief Operating Officer Sheryl Sandberg testified in Washington to discuss foreign meddling in 2016 presidential elections, the spread of disinformation, privacy and censorship. Sheryl Sandberg told the Senate Intelligence Committee her company was "now blocking millions of attempts to register false accounts each and every day" and was "making progress on fake news." But is Sheryl a bit too late?
According to a Pew Research Center survey of U.S. adults conducted May 29-June 11, just over half of Facebook users ages 18 and older (54%) say they have adjusted their privacy settings in the past 12 months, according to a new Pew Research Center survey. Around four-in-ten (42%) say they have taken a break from checking the platform for a period of several weeks or more, while around a quarter (26%) say they have deleted the Facebook app from their cellphone. All told, some 74% of Facebook users say they have taken at least one of these three actions in the past year.
The cracks in Facebook were more apparent when the company announced their earnings in July and the stock price dropped 20% in a single day. Facebook cited slowing ad growth and higher expenses rated to minimizing/eliminating misinformation.
Facebook still has more room to grow because they still own Instagram and WhatsApp. Nevertheless, I think Wall Street fears new regulations for the social media platforms and it very apparent when I look at the charts.
On the daily chart, price failed to close above 21 EMA and take the once weekly demand, which is now a resistance zone at $188.
In addition, price has formed a lower low and a lower high.
Lastly, price recently formed a daily supply level at $181 which took out the most recently pivot low. Thus, the chart suggest price is heading down to the monthly demand at $145.
This post is my personal opinion. I’m not a financial advisor, this isn't financial advise. Do your own research before making investment decisions.
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by rollandthomas
Looks like the stock price is feeling the impact of a shift in fundamentals which could trigger more downside given valuations. I too am part of the 74% as I think that their actions (or lack thereof) are unacceptable to users who engage on their platform for social experiences. I prefer a decentralized community that can govern actions via consensus while improving the experience.