Facebook sees $60 billion in market value erased in just 2 days as advertisers like Starbucks and PepsiCo halt social-media spending

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  • 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.
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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.Advertisement

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.
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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 careerAdvertisement

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