Facebook loses $7 billion as Brands Boycott Facebook ads
Mark Zuckerberg reportedly lost $7.2 billion after several firms pulled away from Facebook ads. On Friday, the shares of the company were down by a drastic margin of 8.3% which is the lowest in months.
Unilever, one of the world's largest advertisers, has also joined other brands in boycotting the ads on Facebook. In a statement, Unilever disclosed that it will cease to spend money on all Facebook properties this year.
The drop in the share prices are estimated to dwindle Facebook's market value by $56 billion and have pushed down the net worth of Facebook's CEO to $82.3 billion, as per the Bloomberg Billionaires Index.
The deterioration in Facebook revenue has also dropped Facebook's CEO to number 4 in the list of the richest people in the world, overtaken by Louis Vuitton boss Bernard Arnault.
Many well-known companies including Verizon Communications and Hershey Co. have boycotted the social media ads after critics vouched that Facebook had failed to regulate hate speeches and disinformation on the platform.
Coca-Cola Co. revealed that it would pause all paid advertising on all social media platforms for at least 30 days.
Responding to the criticism about misinformation on Facebook, Mark Zuckerberg on Friday announced that the company would label all voting-related posts with a link that will encourage users to look into a new voter information hub.
Facebook has also extended its definition of prohibited hate speeches. A new clause states that no ads on the platform will be permitted if they label another demographic as dangerous.
Zuckerberg said that there will be no exceptions for politicians in any of the policies henceforth.
About Facebook
Founded in the year 2004, Facebook is headquartered at Menlo Park and operates with a mission to empower people to build a community to bring the world closer. Facebook is known for its unique culture and over 2 billion people use Messenger, Instagram, WhatsApp along with Facebook to stay connected with friends and family, to discover what’s going on in the world, and to share and express what matters to them. Besides being a well-reputed social media platform, the company also specializes in artificial intelligence and machine learning, marketing science, mobile connectivity, augmented reality, marketing science, connectivity, and open commute.
Mark Zuckerberg reportedly lost $7.2 billion after several firms pulled away from Facebook ads. On Friday, the shares of the company were down by a drastic margin of 8.3% which is the lowest in months.
