Following Facebook’s data privacy scandal where data mining company Cambridge Analytica received access to 50 million Facebook user profiles, the social media platform has been subject to immense scrutiny and criticism with high-profile figures such as Elon Musk deleting their Space X and Tesla pages.
This breach of privacy has created a rage amongst Facebook users making it extremely likely for other social media platforms to flourish at the wake of this mishap. According to the Wall Street Journal, Facebook is contending with a groundswell of users—some of whom are tweeting under the hashtag #DeleteFacebook—who claim to be abandoning the social-media giant, prompting some analysts to warn that its growth juggernaut could sputter.
The publication goes on to report that financial-services firm Stifel lowered its target price for Facebook shares to $168 from $195, saying, “Facebook’s current plight reminds us of eBay in 2004—an unstructured content business built on trust that lost that trust prior to implementing policies to add structure and process”.
Furthermore, a report from CNBC revealed that Zuckerberg has sold more Facebook stock in the last 3 months than any insider at any other company. The publication states:
“Facebook shares dropped 6.77 percent into correction territory Monday, the first trading day after a data scandal involving 50 million accounts added to concerns about user privacy. Facebook shares traded 5.3 percent lower near $163 Tuesday afternoon.
“Analysts are not suggesting anything nefarious behind the regularly scheduled sales. However, the sheer volume of the selling can amount to an overhang on the stock at a time when it could use all the support it can get”.