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After a year of scandals and controversy for Facebook, it was tempting to see Facebook's weekly stock market as a sign that reality has finally hit Mark Zuckerberg, the founder of the company. However, there is no indication that the stock market may be directly related to corporate scandals and the wave of criticism directed at them. On the contrary, it is business growth so great that it can no longer continue to grow at the same pace. In Facebook's second quarterly report for 2018, user growth simply did not meet expectations as corporate spending rose. 22 million new users joined Facebook in the second quarter of 2018. It's the lowest figure for Facebook since 2011.
Read more: Facebook in the historical stock market
– Seeing that a lot of people claim that Facebook's historical stock market depends on something quiet that "the scandals have taken them". The truth is that Wall Street is not really concerned about these scandals, and the stock market is more about the notion that exponential growth is no longer possible, writes Alex Heath in the Cheddar Technology Site [19659004]. We can only wonder why new users are not looking for Facebook, but it's hardly possible to rule out that many people worry about lack of respect for the integrity of users by the company.
At the same time, it's not in the United States and Europe, where Facebook scandals have attracted the most attention because they have the most Big problem of attracting new users, while they have reached a ceiling of users in these regions. It is therefore likely that there are other factors that have been recorded in the stock market. Facebook mentions the fact that the global regulatory framework in the EU has increased the costs of the company. The difficulty of expanding to new regions, such as China, may have also affected growth.
This spring, a massive campaign was launched on social media to leave Facebook, and Facebook has been used hundreds of thousands of times on Twitter. But it was clear that these campaigns had no impact on the company initially. What, on the other hand, can be a long-term problem for Facebook, is that they seem to have more and more trouble attracting new users. In the United States and Canada, more and more teenagers are looking for platforms other than Facebook, and this may have affected business growth issues.
Among the entrepreneurs and investors of Silicon Valley, many have spent the summer on fines of the kind recently introduced by the EU can lead to a huge stockpile and a new economic crisis to the states -United. However, Facebook's weekly share price shows that such races may also be due to problems already present in these companies.
The breed also seems to attract a lot of other big tech companies such as Twitter and Snap.
also created a new criticism against the company in Silicon Valley. Many competing companies, as well as idealistic voices in the technology industry as a whole, have been furious with the way Facebook has treated controversies, such as Cambridge Analytica, and the treatment of harmful information, deceptive and threatening. Human rights organizations, including those in India, Sri Lanka and Myanmar, have blamed Facebook for acting as a platform to wake up to massive waves of violence and killings at home. during the past year.
In recent months, Facebook has also experienced a bleak time for a series of controversial decisions and statements by founder Mark Zuckerberg. During the summer, Zuckerberg introduced a series of changes in the platform, allegedly an attempt to solve problems with the dissemination of manipulated and cleaned news, images and video clips, for example. But in fact, Facebook's changes seem to have compounded the problems. In a spoken example, Facebook still allows the High-Extreme Infowars conspiracy site to post videos and content to Facebook. Infowars claimed, among other things, that George W. Bush was behind the terrorist attacks in the United States in 2001, and that the massacre at a Connecticut nursery school in 2011, where 20 children were killed, was a show orchestrated by Barack Obama. Although many parents of children who died during the massacre were harassed and threatened by Infowar's lies, Facebook declined to remove the clips and articles from the platform. Youtube recently closed the chain of its platform.
Zuckerberg also defended the rights of those killed to broadcast videos and articles on Facebook. In the panels that Facebook has assembled to find better agency management on the platform, they work with two conservative organizations, the Heritage Foundation and the Koch Institute, which do not have the largest confidence in journalism and science. They both put hundreds of millions of dollars on misleading campaigns in which they deny the climate crisis.
But the anger found against Facebook among American liberals and technology idealists is hardly the main reason for the stock market. In the media and technology experts, it is popular to discuss Facebook's current problems, the proliferation of right-wing violence and the general lack of respect for the integrity of the user, but these problems do not necessarily concern the complex movements of users.
The sensationalist media in the United States have declared that the beginning of the end for Facebook. The popular Conservative Information Platform Drudge Report has simply dubbed "Facebook's Death Spiral".
At least, these are premature conclusions. Despite all the scandals earlier this year, Facebook's market capitalization has continued to rise and Thursday's race can be seen as a return to the level of recent years.
The big Facebook owners like Trillium Asset Management demand the resignation of Mark Zuckerberg. But it will probably take time before Zuckerberg gives up his life plan. We will never underestimate the speed at which circumstances may change in the US technology industry, but nothing indicates for the moment that Facebook is about to lose its incredible power in the advertising market and the income from it. The only point of view this week is that power is increasing a little less quickly than before.
Read more: Zuckerberg accused of flaws in privacy policy
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