Investors are afraid of outflow of users, and advertisers do not want to associate with the company involved in the scandal with data leakage. Experts do not exclude further decline in the value of shares.
Capitalization of Facebook for a week fell by 58 billion dollars. This became known on Saturday night, March 24, after the auction on the New York Stock Exchange.
The cost of one share of the company on the US stock market fell from 177 dollars 1 cents on Monday to 159 dollars 39 cents for Friday's close. Investors are wary of the increased attention of supervisors and the outflow of users, says leading analyst at Pivotal Research, Brian Wieser.
At the initial placement of shares in 2012, the market estimated the social network at 104 billion dollars. Thanks to the constant inflow of users and the dominance of the digital advertising market, the value of one share rose from the initial $ 38 to $ 190 in February 2018. However, in the coming months, the share price may fall to $ 152, believes Wieser. This forecast was prepared by the analyst even before the scandal with the leakage of data.
From the point of view of advertisers, the social network is an "amazing tool" due to "the accuracy of determining the target audience" with the help of user data, says founder of the advertising agency M & C Saatchi David Kershaw. However, corporations "do not want to be associated with a company seen in the collection of user data" without their knowledge, the expert believes.
Earlier, the founder of the social network Mark Zuckerberg admitted Facebook's guilt in the leakage of user data.