Facebook Stock Recover Losses on Mass Meeting of Advertisers
Facebook stock price rebounded sharply in the last two days as the company started working on advertiser’s complains and plans to set a mass advertiser’s meeting. The Facebook stock jumped more than 4.5% in Wednesday trading. It is now down slightly from 52-weeks high of $245 that it had hit in June.
The share saw huge selloff last week on boycott calls from advertisers as several brands signed a pledge to suspend ads on Facebook for July. They want the largest social media platform to improve on moderating user content.
In addition, big companies like Verizon Communications, PepsiCo, and The Cola-Cola Company and a list of blue-chip companies are pledging to extend the boycott campaign through the November election. They urge CEO Mark Zuckerberg to take measures to end the “hate speech.”
Zuckerberg said, “the boycott is more of a reputational and a partner issue than an economic one, and My guess is that all these advertisers will be back on the platform soon enough.”
Nick Clegg, who is the VP of Global Affairs and Communications, says the company has zero-tolerance policy against hate speech – claiming that only a tiny fraction of content is hateful in over 100B daily interactions.
“I want to be unambiguous: Facebook does not profit from hate. Billions of people use Facebook and Instagram because they have good experiences — they don’t want to see hateful content, our advertisers don’t want to see it, and we don’t want to see it. There is no incentive for us to do anything but remove it,” Nick Clegg said.
The market analysts believe if the boycott campaign extends into the next few months, the company could face significant profits decline. Moreover, the boycott will massively hit the reputation of the largest social media platform.