If you are wondering what could have caused this ‘misfortune’ for the charismatic Facebook founder and leader, your guess is not far from what you already know but it has twists and turns.
After losing over $7 billion of his net worth to fast crashing Facebook shares, it is right to say, Mark Zuckerberg, Facebook founder and CEO is no longer the third richest person in the world.
The problem started for Mark Zuckerberg after he refused to take down hate speech and posts promoting violence posted by President Donald Trump. While Mark has taken steps to reassure the world, advertisers and Facebook users, his promises are falling on deaf ears.
Yesterday alone, shares of Facebook crashed by a whopping 8.3%. This sounds like a minor percentage decrease until you do the maths and found out that at least, $56 billion was shaved off the stock market value of Facebook.
The sell-off of the shares of Facebook was triggered by a revolt by advertisers. Anglo-Dutch foods giant, Unilever Plc said it will suspend ads on Facebook. Later on Friday, Coca-Cola Co. said it would pause ads on all social media platforms for at least 30 days, while Honda Motor Co.’s U.S. unit, Hershey Co. and several smaller brands said they would join the boycott.
The Anti-Defamation League, among the collection of civil rights groups that organized the July ad boycott, called the changes announced by Zuckerberg “small.”
“We have been down this road before with Facebook,” the group said in a statement cited by Bloomberg. “They have made apologies in the past. They have taken meager steps after each catastrophe where their platform played a part. But this has to end now.”
“You can continuously see the challenge of them trying to have these kinds of broad principles around free expression and stopping harm, and then that mixing with the realpolitik of trying to keep the executive branch happy, which happens to have a half dozen investigations open of Silicon Valley companies for a variety of reasons,” Alex Stamos, a former Facebook security executive, said this week at the virtual Collision Conference.
The revolve and boycott of Facebook ads could spiral out of control should Mark Zuckerberg continues to take light measures to combat hate and fake news on the platform.
While Facebook was hesitant to call President Trump to order, Twitter, its benign rival was among the first social media giant to label and censor some of the posts by Trump that was seen as promoting violence. President Trump replied with an executive order that removes the ‘non-liability’ clause from rights enjoyed by social media platforms.