Facebook lost over $100,000,000,000 yesterday 😮
Facebook had a terrible, horrible, no good, very bad day.
After a quarterly earnings report and call with Wall St analysts, their stock price dropped ~20% in after-hours trading. As of right now (7AM PT), their stock is trading at $176 (down 18% from yesterday).
Over $100B in value disappeared in an insight. Some context: that's like the entirety of General Motors, Ford and Target... combined. The drop most of Facebook's recent stock growth, returning to prices from April.
With their recent product efforts and direction, this isn't a huge surprise. Efforts to curb "viral news" will negatively affect a company whose primary revenue stream is attention. Product changes that improve user privacy (largely caused by the EU's GDPR and the post-election Cambridge Analytica scandal) will hurt Facebook's ability to charge companies big dollars to specifically target ads, and adding new employees to moderate content will hurt their bottom line.
At the same time, Facebook's doubling-down on increasing "time well spent" in the app with their newest feature: Watch Parties. Their hope: investments in features like these will increase Facebook's growth in the long-run, even if it means having some bad quarters.
You'll be able to watch videos on Facebook with your friends remotely... in other words, it's the feature that Netflix should have built years ago. 😂
Psst! If you're still dying to watch Netflix with your buddies, maker Stephan Boyer built a Chrome extension to sync up your Netflix streams remotely. 🙌
After a quarterly earnings report and call with Wall St analysts, their stock price dropped ~20% in after-hours trading. As of right now (7AM PT), their stock is trading at $176 (down 18% from yesterday).
Over $100B in value disappeared in an insight. Some context: that's like the entirety of General Motors, Ford and Target... combined. The drop most of Facebook's recent stock growth, returning to prices from April.
With their recent product efforts and direction, this isn't a huge surprise. Efforts to curb "viral news" will negatively affect a company whose primary revenue stream is attention. Product changes that improve user privacy (largely caused by the EU's GDPR and the post-election Cambridge Analytica scandal) will hurt Facebook's ability to charge companies big dollars to specifically target ads, and adding new employees to moderate content will hurt their bottom line.
At the same time, Facebook's doubling-down on increasing "time well spent" in the app with their newest feature: Watch Parties. Their hope: investments in features like these will increase Facebook's growth in the long-run, even if it means having some bad quarters.
You'll be able to watch videos on Facebook with your friends remotely... in other words, it's the feature that Netflix should have built years ago. 😂
Psst! If you're still dying to watch Netflix with your buddies, maker Stephan Boyer built a Chrome extension to sync up your Netflix streams remotely. 🙌
Highlight
New launch: Telepost turns any Telegram chat into a blog. 📝
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