October 26, 2021, 12:12 pm EDT
Bears Arrived for Social Network Giant
Once a shining start as the social network giant Facebook (FB) faced a bearish time after the earnings report yesterday. FB is down about -4% as of now. More importantly, FB is already down near -20% from the top made about 2 months ago so bears arrived officially.
FB faced multiple issues that caused the slowdown or the end of the shining era. First of all, it lost its most important customer group, the younger generation. Its content is not an attractive element for young people. Second, its leadership, Mark Zukerberg, has been questioned from many aspects. For example, many shareholders do not have voting rights according to their special rules. Lastly, the algorithm to control or limit the contents on FB is highly suspicious. Recently, its network was forced to shut down for many hours that was also a sign of trouble when dealing with network security.
We believe FB may need to face a long downtrend for months or years to come.