Facebook’s stock movement
Facebook (FB) stock fell 3.3% yesterday after Needham analyst Laura Martin downgraded the stock due to various issues, including executive departures, privacy, and regulatory concerns. Facebook stock has fallen ~7% in the last year.
As of yesterday, FAANG stocks—Facebook, Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet’s Google (GOOGL)—had market caps of $464.4 billion, $868.3 billion, $883.3 billion, $156.9 billion, and $827.3 billion, respectively.
Downgrades Facebook stock
Martin downgraded Facebook stock from “buy” to “hold.” Last Thursday, two Facebook executives, chief product officer Chris Cox and WhatsApp vice president Chris Daniels, left the company. Eleven Facebook executives, including Instagram co-founders Kevin Systrom and Mike Krieger and chief security officer Alex Stamos, have exited the company amid tensions.
The downgrade comes after the live streaming of a terrorist attack in New Zealand on Friday. Facebook is also facing a criminal investigation for its data-sharing deals with large tech companies, according to The New York Times. Such events have deteriorated Facebook’s user base, which stands at 2.32 billion monthly users.
Stricter data-sharing policies are expected to impact the company’s advertising business, a major revenue driver. Like Facebook, rivals Twitter (TWTR), Snap (SNAP), Yelp (YELP), and Google depend on advertising sales for most of their revenue.