- Facebook shares fell roughly 1% on Monday as more advertisers boycotted its platform. The drop followed an 8.3% slide on Friday amid the first round of pulled advertising.
- The two-day stock decline has resulted in roughly $60 billion in market value being erased from Facebook’s market value.
- Starbucks, PepsiCo, Coca-Cola, Unilever, and Verizon have all suspended their advertising on Facebook and, in some cases, other social-media platforms.
- BMO Capital Markets analyst Daniel Salmon said the boycott won’t significantly hurt Facebook’s revenue as the group has more than 8 million advertisers.
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Facebook shares dropped roughly 1% on Monday as a growing number of advertisers joined the boycott of the social network. The continued slide follows an 8.3% loss on Friday amid the first round of pulled advertising.
The two-day stock decline has resulted in roughly $60 billion in market value being erased from Facebook.
Starbucks, PepsiCo, Coca-Cola, Diageo, Unilever, and Verizon have all halted advertising on Facebook and, in some cases, other social-media platforms. Several high-profile executives have called for the social-media giant to do more to combat the spread of misinformation and hate speech on its platform.
Facebook has responded with policy tweaks. It plans to label ads that discuss voting to direct viewers to accurate information, ban a wider range of hateful language, and tag posts by political figures that violate its standards as "newsworthy" to indicate why they haven't been taken down.
However, the boycott is unlikely to do much damage to Facebook's revenue as it has more than 8 million advertisers, BMO Capital Markets analyst Daniel Salmon said in a research note.
He added that the bigger financial impact could stem from greater pressure on Facebook to invest in safety and security in the coming years.
