The past couple of years have not been very kind to social media giant Facebook. There was the Cambridge Analytica scandal where it was revealed that Facebook was allowing other companies to gather the data of their users without their consent. Then there were the infamous ads placed on Facebook that were paid for by Russian organizations in an attempt to influence the outcome of the 2016 United States presidential election. Facebook co-founder and CEO Mark Zuckerberg was forced to testify on Capitol Hill in from of a senate committee as a result of the various scandals that Facebook has been involved in lately.
All of this controversy and a lack of user confidence has not done great things for the stock value of Facebook. In fact, it has been tanking like never before in recent days. Facebook stock’s recent five percent drop put its value at its lowest point since way back in Feb. 2017. This has made investors on Wall Street very nervous because the company was always seen as being very stable and reliable until recently. There are also rumors that the company will soon be filing a report that shows they have lost a record amount of money in a single month. This will be the third consecutive month that the company has lost money. That is only the beginning of the bad news for Facebook. They are also expected to report losses for the fourth quarter of 2018. This will be the second straight quarter they have reported financial losses. Facebook has not had two straight losing quarters in five years.
There have been some powerful Facebook shareholders who have suggested that Mark Zuckerberg step down from his position as chairman of Facebook in an attempt to improve overall public confidence in the company. Some people believe that having an independent chairperson is the only way that proper checks and balances can be implemented. However, Zuckerberg has remained defiant and refuses to step down.
Morale at the company seems to be at an all-time low. Employees at Facebook who were recently surveyed seem to share a lot of the general public’s lack of confidence in the company. Another problem that Facebook had has involves the departure of many of its top executives. Many of them left because of the aggressive management style of Zuckerberg. He is said to wield his power with an iron fist.