While Facebook’s stock price crashed down almost 19% due to setbacks in user growth and profits, the company is set to do well over the long-term, infers Aimee Picchi of CBS News. This downturn was the result of new EU data laws and the Cambridge Analytica scandal. However, Facebook’s stock decline only reached levels of May 2017, and will likely bounce back, as it has done during previous controversies. In fact, the EU data laws will probably benefit the company as it makes it harder for smaller companies with fewer resources to fully comply. Market analysts believe that Facebook is still worth investing in.
Facebook has finally felt the effect of its data scandals and declining user growth, seeing its share price plummet by around 20%, reports Therese Poletti of Market Watch. It is particularly painful because the company had been gathering a reputation for being able to weather controversies without such repercussions. Its revenues will continue to shrink over 2018, which has shocked shareholders. New EU data laws and fewer users signing up have hit the company hard. This economic downturn is set to continue and eat away at the company’s income. Facebook is suffering for the scandals that it allowed to fester.