18 Oct

Facebook May Have More Money and Problems after 2020 Vote

WRITTEN BY Ruchi Gupta

Facebook (FB) critics, from Donald Trump to Democratic presidential nominee candidate Elizabeth Warren, are rushing to the platform to promote their campaigns. And they’re leaving tidy sums of money on Facebook’s table. The Trump campaign, for instance, recently spent about $2.0 million on Facebook ads in just one week. Pro-Trump groups are spending just as much on Facebook ads to sell Trump ahead of the 2020 vote.

2020 vote activities sending big sums to Facebook’s coffers

Warren also pays to run Facebook ads, including some controversial ones. Facebook has scooped up over $835.4 million in US political ad sales since May 2018. Trump has spent about $21 million, and Warren has spent over $4.3 million on Facebook ads since then. In August, The Wall Street Journal reported the cost of advertising on Facebook had risen significantly because of politicians jostling for ad space on the platform.

Prominent politicians not happy with Facebook

Although Facebook is earning big from the 2020 vote ads, it might have problems to deal with after the vote. The company has found itself on the radar of some of the 2020 race’s leading contenders. For example, Democratic frontrunner Warren has vowed to split the company to control its influence, and has taken issue with Facebook’s ad rules. She doesn’t think Facebook should allow politicians to use its platforms to say whatever they think.

Joe Biden, another major Democratic candidate, has recently clashed with Facebook. Biden requested that Facebook, Twitter (TWTR), and Google (GOOGL) remove certain ads about his family from their platforms. But the companies refused, a response the Biden campaign deemed “unacceptable.” If elected, Warren and Biden could pursue aggressive tech regulations that would hurt Facebook.

Although his attacks have toned down lately, Trump has also had issues with Facebook, along with Twitter and Google. He has accused the widely used platforms of suppressing conservative voices. Trump has also signaled he would support a crackdown of big tech companies to control their power.

Latest articles

Since my last article about Nvidia (NVDA), the stock has risen from $196.86 to $208.57. I expect a further rise after today's earnings results.

TJX Companies (TJX) is scheduled to announce its fiscal 2020 third-quarter earnings results on November 19. Its third quarter ended on November 2.

AT&T stock is currently trending downward in today’s trading session. It’s down about 1% as of 11:52 AM ET. The stock fell after HSBC downgraded its rating.

Canopy Growth reported its second-quarter earnings results today. It's already down 16.07% on the day and is trading at 20.52 Canadian dollars on the TSE.

The EIA released its inventory report at 10:30 AM ET. WTI crude oil prices rose around 0.4% at 11:31 AM ET from their last closing level.

Alibaba stock has seen turbulence throughout the year, as the US and China have often been at odds. It fell around 2.4% on November 13.