Facebook is facing a mountain of problems.
The social media giant’s stock fell nearly 5 percent on Monday, hitting its lowest level since February 2017, as the social media company came under fire after a damaging report about its top management in The New York Times.
Facebook is poised to close its third straight month in the red, which would mark its longest monthly losing streak on record. Furthermore, Facebook is on track for its longest quarterly losing streak since 2013, and its first full year of losses since going public. According to some experts, the stock isn’t done falling.
The shares are on track for their third straight month of losses, something they’ve never done before, and their second straight calendar quarter of losses, which they haven’t seen since 2013.
The short term will likely be difficult for the stock with mounting headwinds.
“The market has been absolutely punishing companies with decelerating growth, and that’s exactly what you’re seeing with Facebook. I don’t think there’s any light at the end of the tunnel anytime soon. They’re making some pretty aggressive investments to deal with improving their ad transparency, getting rid of fake accounts, eliminating fake news, and that’s going to be a drag on profits in the near term,” said Mark Tepper, CEO of Strategic Wealth Partners.
Facebook shares have declined 25 percent this year.
Recently, Mark Zuckerberg gathered about 50 of his top lieutenants and told them that Facebook Inc. FB was at war and he planned to lead the company accordingly.
During times of peace, executives can move more slowly and ensure that everybody is on board with key decisions, he said during the June meeting, according to people familiar with the remarks. But with Facebook under siege from lawmakers, investors and angry users, he needed to act more decisively, the people said.
Mr. Zuckerberg’s new approach is causing unprecedented turmoil atop Facebook, driving several key executives from the company, according to people familiar with the matter. At times, it has created tensions with his longtime chief operating officer, Sheryl Sandberg. The June meeting and strains with Ms. Sandberg haven’t been previously reported.
The 34-year-old CEO believes Facebook didn’t move quickly enough at key moments this year and increasingly is pressing senior executives to “make progress faster” on resolving problems such as slowing user growth and securing the platform, said people familiar with the matter. Mr. Zuckerberg also at times has expressed frustration at how the company managed the waves of criticism it faced this year.
On Friday, that tension was on display when, during a question-and-answer session with employees at Facebook’s headquarters in Menlo Park, Calif., he blasted a fresh round of critical news coverage as “bullshit,” according to the people familiar with the remarks.
One employee at the session asked if Facebook could deter leaks by publishing an internal report about how frequently offenders are found and fired. Mr. Zuckerberg said Facebook does fire leakers, but the root cause was “bad morale” perpetuated by attacks in the media.
Mr. Zuckerberg, who previously set annual goals such as to learn Mandarin and read 25 books, said this year he would focus on fixing Facebook. He believes this tougher management style is necessary to tackle challenges being raised both internally and externally, according to a person familiar with his thinking.
Mr. Zuckerberg’s new posture could trouble those who feel his “move fast, break things” mantra from Facebook’s early days contributed to many of the company’s current problems. It also has led to confrontations with some of his top reports, including Ms. Sandberg, who has long had considerable autonomy over the Facebook teams that control communications and policy.
To add to Zuckerberg’s problems, he is facing an exodus of users as they seek a social media platform that honors free speech and isn’t ruled over by a tyrannical leftist such as he is.
New social media platforms have sprouted up over the last 2 years, and as they have matured, users had been dipping their toes into the growing pool of alternative platforms. That slow-motion tryout being done by a few hundred scattered around the world, has begun to turn into a flood of new users as Zuckerberg banishes more websites from his online kingdom for having an opinion that is contradictory to his own.
All of the platforms are still undergoing growing pains, but nothing so severe that should deter you from making them a part of your social media experience. Many users find that they now spend little to no time on Facebook after experiencing true free speech on these platforms. Some examples of freedoms unavailable on Facebook expressed by users is being able to speak the truth about Islam, ability to openly discuss the evils of socialism, against the Cultural Marxist agenda ongoing in America, the ability to freely express their Christian faith without persecution, and much more.
James E Windsor, Overpasses News Desk
November 19th, 2018