Tencent Technology News, according to foreign media reports, social networking giant Facebook is trying to solve the problem of large-scale security invasion, but investors do not. On Thursday, Facebook's stock opened at $150.13, a drop of more than 30% from its peak in July this year.
The company is still busy dealing with privacy scandals, fake news, and the recent massive sell-offs in the technology industry.
In March of this year, Facebook was double-reviewed by consumers and US and international regulatory agencies as it was involved in the data scandal of British data analytics company Cambridge Analytica. Since then, its stock price has been low.
The longer this privacy issue is delayed, the more likely Facebook's core business will be affected.
“For the first time, we’ve heard that advertisers are starting to complain about Facebook’s troubles. They began to hesitate to vote for Facebook. & rdquo; Barclays Bank analyst Ross Sandler said in a research note to investors this week.
At the same time, Facebook finally launched the long-awaited Portal smart speaker this week. However, its new device has also been plagued by the company's trust problem: users are worried about privacy-related issues.
However, Facebook's promised solution also made Wall Street investors feel very uneasy. In July of this year, Facebook executives warned investors that its advertising sales growth rate may slow down because it wants to “prioritize privacy issues”. As a result, its market value has experienced an unprecedented shrinkage in the stock market.
What makes Facebook's future prospects even more uncertain is that the company is also preparing to bounce it on the Stories feature of the plagiarism of the plagiarism.
“The question now is: Will it be as profitable as the News Feed? We really don't know. ”Facebook COO Sheryl Sandberg said in a conference call with analysts in July this year.
Sandler said that Facebook needs a "positive catalyst" to help it get back to work. This catalyst may appear in the earnings report it announced later this month. However, Sandler believes that Facebook's share price may still be "in the wash", this situation may continue until early next year.
A potential catalyst might be its photo sharing app Instagram. For a long time, Instagram has been seen as a secret weapon for Facebook. Instagram has more than 1 billion months of active users and is starting to introduce longer video formats and shopping tools.
The sudden departure of the two founders of Instagram may give Facebook more control over the direction of the app. “The newly appointed leader may be more focused on pursuing profitability. "The US Financial Research and Analysis Center (CFRA) analyst Scott Kessler said in a research note this week.
However, Facebook and its two biggest acquisitions, the founders of Instagram and WhatsApp, have openly disagreed, which may make it harder and harder for the next Instagram or WhatsApp to be put into Facebook in the future.