Facebook sees $60 billion in market value erased in just 2 days as advertisers like Starbucks and PepsiCo halt social-media spending
- 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
Marketsanalyst, said the boycottwouldn't significantly hurt Facebook's revenue, as it has more than 8 million advertisers.
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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.
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
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