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Facebook lost more than Tesla's market cap

155 pointsby skshetryabout 7 years ago

4 comments

twblalockabout 7 years ago
The stock will come back, just as Wells Fargo, United Airlines, and Intel stock came back after their scandals.<p>Facebook in particular will come back because there is no alternative social network with nearly as many people on it. The fundamentals of the business aren&#x27;t really at risk -- most of the users will stay. The impact of potential privacy-related regulation is already priced in to a large extent because everyone already knew that GDPR was going to happen before this latest scandal broke, and Facebook was already prepared to comply with it. I doubt the US Congress in its current state would pass anything as strict as that.
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panarkyabout 7 years ago
Facebook isn&#x27;t going to disappear, but the company&#x27;s valuation has fast growth baked in the cake.<p>We&#x27;re already seeing dramatic deterioration in DAUs and minutes per user.<p>This episode will cause a few users to leave Facebook completely, but many more will use it less.<p>And that deceleration in the growth rate will need to be offset with an acceleration in earnings and cash flow for the stock price to increase from here.
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toni_erikaabout 7 years ago
So, an already oversized company that has been loosing business to startups for several years is gonna do more work in-house?
arthurofbabylonabout 7 years ago
A lot of commentary here (not all) seems to miss one critical point: what is the inherent value of Facebook to its users, and has THAT been recently degraded? Controversy aside, this will be the big factor behind an exodus from Facebook, and I would argue that for months if not a year or more, Facebook has ceased to provide value to an enormous portion of its user base.
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