Facebook sees $60 billion in market value erased in just 2 days as advertisers like Starbucks and PepsiCo halt social-media spending
Facebook shares fell roughly 1% on Monday morning as more advertisers announced boycotts of its platform. The drop followed an 8.3% slide on Friday amid the first round of pulled advertising. The two-day stock decline resulted in roughly $60 billion 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, on other social-media platforms too. Daniel Salmon, a BMO Capital Markets analyst, said the boycott wouldn't significantly hurt Facebook's revenue, as it has more than 8 million advertisers. Visit Business Insider's homepage for more stories.
Facebook shares dropped roughly 1% on Monday morning as more advertisers joined the boycott of the social network. The continued slide followed an 8.3% loss on Friday amid the first round of pulled advertising. The two-day stock decline resulted in roughly $60 billion in market value being erased from Facebook at those lows. Starbucks, PepsiCo, Coca-Cola, Diageo, Unilever, and Verizon have all halted advertising on Facebook — and in some cases, on other social-media platforms too. 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. Read more: Jefferies says buy these 14 cheap stocks that are financially strong and positioned for market-beating returns Facebook has responded with policy tweaks. It said it planned 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, the 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. Read more: Real-estate investor Joe Fairless breaks down how he went from 4 single-family rentals to overseeing 7,000 units worth $900 million — and outlines the epiphany that turbocharged his career Join the conversation about this story » NOW WATCH: What makes 'Parasite' so shocking is the twist that happens in a 10-minute sequence
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Growing number of companies withdraw advertising over failure to deal with hate and misinformationAn unprecedented boycott...Growing number of companies withdraw advertising over failure to deal with hate and misinformationAn unprecedented boycott of Facebook is moving across the Atlantic, as the coalition of activist groups behind the Stop Hate for Profit campaign have called on companies in the UK and Europe to join in the action.The campaign has already gained the support of more than a thousand brands in the US, including Coca-Cola, Unilever and Ford, some of which have extended their boycotts globally. Now, the coalition, coordinated in Europe by the Centre for Countering Digital Hate, is calling on British and European companies to join in the movement. Continue reading...
Disney has reportedly slashed its Facebook advertising budget amid a big-business boycott of the social media platform
Disney has slashed its advertising budget on Facebook, the Wall Street Journal reports. The news comes...Disney has slashed its advertising budget on Facebook, the Wall Street Journal reports. The news comes after more than 500 advertisers suspended ads on Facebook as part of an industry boycott of the platform over its stance on hate speech. Disney was the single biggest advertiser on Facebook in the first half of this year, according to analysis by research firm Pathmatics Inc. Visit Business Insider's homepage for more stories. Disney has slashed its advertising spend on Facebook and Instagram amid a boycott of the social-media platform led by civil-rights groups, the Wall Street Journal reports. Sources familiar with the matter didn't say how much had been cut, or when the decision was taken. The sources said Disney-owned streaming service Hulu had paused all advertising on Instagram, and one source said that ads for its cable network shows are unlikely to return to Facebook after the summer TV advertising lull, unless the social media giant changes its policies. The Facebook boycott, "Stop Hate for Profit," was launched in June by a coalition of civil rights groups including the NAACP, Color of Change, and the Anti-Defamation League. It asks big companies to stop advertising on Facebook in an attempt to force the company to rethink its hate speech and misinformation policies. A series of high-profile advertisers including Coca-Cola, Dunkin' Donuts, Verizon, and more than 500 others have announced they are suspending their ads on the social network. Disney has not officially announced any decision to reduce advertising spend, and was not immediately available for comment when contacted by Business Insider. Analysis provided to the Journal by research firm Pathmatics Inc suggests Disney was the top advertiser on Facebook for the first half of this year, spending an estimated $210 million. It was the number two spender in 2019, behind Home Depot. Leaders from Stop Hate for Profit met with Facebook executives including Mark Zuckerberg on July 7, and came away unimpressed. In a press call, the groups said the meeting had been a "disappointment," and that out of ten recommendations they had put forward to Facebook, it had only partially addressed one: That the company should hire a C-suite level civil rights exec. Facebook said it would hire a civil rights lead, but did not commit to make them a member of the C-suite.Join the conversation about this story » NOW WATCH: A cleaning expert reveals her 3-step method for cleaning your entire home quickly
Civil rights groups say company did not commit to concrete plan to address hate speech and...Civil rights groups say company did not commit to concrete plan to address hate speech and misinformationThe organizers behind a major advertiser boycott of Facebook have called a meeting with Mark Zuckerberg and other executives “disappointing”, saying the company failed to commit to concrete solutions for addressing hate speech and misinformation on the platform.Officials at Facebook, including Zuckerberg, the CEO, and Sheryl Sandberg, chief operating officer, met with members of the coalition of civil rights groups over video chat for an hour on Tuesday to discuss the largest boycott in Facebook history, which has gained the support of more than 1,000 of its advertisers, including Unilever, Coca-Cola, and Starbucks. Continue reading...