How is Facebook doing these days? After repeated scandals, a tidal wave of criticism, a much-pilloried Congressional appearance, bad publicity, rumors and reports of declining user numbers and/or participation, the social media platform… is enjoying its stock trading higher than ever.
Here’s Naked Capitalism’s most recent chart of Facebook’s value against that of other tech giants over the past year or so:
You can see that Facebook’s market value took hits in February, March, and April, but then climbed right back up. In fact, today’s high value seems to be Facebook’s best ever.
My question for you all is: why is this happening?
After all, 2018 has been a terrible year for Facebook. Why is their stock growing, rather than collapsing?
Here are a few starter ideas, either from me or from other observers. Please add your own:
- Investors are impressed by Zuckerberg’s damage control.
- Advertisers feel that they can still make money on the platform, despite popular anxiety.
- Facebook is too big to fail.
- Other platforms – Telegram, Mastodon – just aren’t good competitors.
- People are jumping from Facebook to Instagram, which Facebook owns. Most users just can’t escape.
- Facebook keeps offering new services, like Memories, which people and therefore advertisers like.
- This earnings spike is only a short-term blip. It’s the calm eye of the storm before the hurricane wall blasts Facebook to smithereens.
What do you think?