Reasons Facebook Dropped 4% Yesterday

  Reasons Facebook Dropped 4% Yesterday   "The New York Times" joined "The Wall Street Journal" in the war against Facebook.  

What happened

  Last week was a rough one for Facebook FB (NASDAQ) $343,21 0,00 (%0,00) investors as The Wall Street Journal published a five-part announcement against the world's largest social media company. Contents of Highlights from Descriptions:

• Facebook's "VIP" XCheck program, which exempts Facebook users from the company's usual rules against posting malicious content.
• The negative effects of Instagram on the mental health of young girls.
• Controversial content posted on Facebook tends to make Americans "more angry."
• Blocking lack of impact: Facebook's platform of traffickers and armed groups to manipulate for malicious purposes.
• How Facebook has failed perhaps its most important test in 2020 – sowing divisiveness and conspiracy theories for this platform Covid Vaccine.

Thanks to The Wall Street Journal, last week hasn't been an easy week for Facebook stocks, and this week will continue to be tough because of its involvement in the battle, the New York Times announced this morning.

So what

In this morning's article, The New York Times covered another little-known Facebook project called Project Amplify. The Amplify Project aims to show its users positive stories about the social network.

Reasons Facebook Dropped 4% Yesterday

Facebook's latest move can be summed up as the company's handling of its authority to more openly challenge criticism by government officials, according to the Times.

Now what

Unlike last week's series in The Wall Street Journal, The New York Times article does not appear to be a one-off first salvo in a week-long investigative journalism. This is good news for Facebook investors, as the Journal's series seems to have seriously shaken the company. The Times reported that Nick Clegg, Facebook's vice president, complained that the Journal's articles "contain deliberate mischaracterizations of what we're trying to do." But as the Times observed, he "did not elaborate on what the misidentifications were". That's why Facebook stock fell another 4,3% on top of the more than 5% it lost last week.  

Source: The Motley Fool

 

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