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- Facebook shares fell about 1% on Monday as more advertisers boycotted its platform. The drop followed an 8.3% drop on Friday amid the first round of withdrawn advertising.
- The two-day decline in shares has resulted in approximately $ 60 billion in market value being erased from Facebook’s market value.
- Starbucks, PepsiCo, Coca-Cola, Unilever and Verizon have suspended their advertising on Facebook and, in some cases, on other social media platforms.
- BMO Capital Markets analyst Daniel Salmon said the boycott will not significantly affect Facebook’s revenue, as the group has more than 8 million advertisers.
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Facebook shares fell about 1% on Monday as an increasing number of advertisers joined the boycott of the social network. The continuing slide follows an 8.3% loss on Friday amid the first round of withdrawn advertising.
The two-day drop in stocks has caused Facebook to erase approximately $ 60 billion in market value.
Starbucks, PepsiCo, Coca-Cola, Diageo, Unilever and Verizon have stopped advertising on Facebook and, in some cases, on other social media platforms. Several high-profile executives have asked the social media giant to do more to combat the spread of disinformation and hate speech on its platform.
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Facebook has responded with policy adjustments. She plans to tag ads that discuss voting to direct viewers to accurate information, ban a wider range of hateful language, and tag posts by political figures who violate her standards as “newsworthy” to indicate why they have not been removed.
However, the boycott is unlikely to do much harm to Facebook’s revenue as it has more than 8 million advertisers, BMO Capital Markets analyst Daniel Salmon said in a research note.
He added that the biggest financial impact could come from increased pressure on Facebook to invest in security in the coming years.
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