Once upon a time not even that long ago, being a part of Facebook was a great thing. The site was seemingly used by everyone to stay connected with each other, and if you were not part of the community you were really missing out.
Now, imagine what it was like to be working for Facebook — or to be Mark Zuckerberg himself. They were basically printing money, and it looked like there was no stopping the site’s growth or influence.
Needless to say things have changed, and these days Facebook finds itself in the headlines for all the wrong reasons. Whether it’s Cambridge Analytica or other privacy concerns or simply people feeling like they no longer enjoy the platform, it’s clear life for the site and company has taken a turn for the worse.
It’s been a rough week
Where should we start? This week produced a couple of less-than-good stories regarding the site and its CEO, both of which could have major implications as we go forward.
The first issue we will look at is how Facebook is not doing nearly as well financially as they were expected to. Its stock price fell more than it ever had before during after-hours trading Wednesday, causing Facebook to lose roughly $120 billion in market value.
While Facebook is still worth quite a bit, a drop like that is very significant. As for Zuckerberg, he lost about $16 billion of his personal valuation when the price plummeted.
Along with that, Facebook — while still growing — is not moving forward at the pace that was expected. The company reported revenue of $13.23 billion in the second quarter, which fell short of the projected number of $13.36 billion.
Investors are particularly concerned with where the slow growth is. Facebook reported slower gains in people logging into the site at least once a month as well as those who log in each day, with the numbers for both falling short of what was anticipated.
It’s worth noting that daily usage did not change in the United States or Canada, though there was a decline in Europe. And while the site’s numbers did not meet projections, net income was $1.74 a share, which beat the estimated $1.71.
Might a loss in value lead to big changes?
Remember Facebook is not some nice little plucky website; it’s in fact a giant company with shareholders who want to make sure their money isn’t being flushed down the drain. If things continue going in the direction they are now, there’s no saying what might happen.
One investor has an idea, and that is to stop Zuckerberg from having the roles of chairman and CEO. Trilliam Asset Management has scrapped with Zuckerberg in the past, so it’s probably not surprising that the group would file a proposal to oust him from the role.
Citing his mishandling of what has become a growing number of crises, Trilliam — which has an $11 million stake in the company — has been pushing for Facebook to split Zuckerberg’s two titles, which is something other big tech companies have done.
This is not the first time one of Facebook’s shareholders has targeted Zuckerberg, and it probably won’t be the last. It will be tough to remove him though because he holds Class B shares, which gives him the majority of voting power.
Still, if Trilliam or someone else was to gather enough support from other shareholder groups, it’s possible something could happen.
Ready to delete Facebook? Maybe just deactivate it?
If you have read all the stories about Facebook and decided it is time to move on from the site, there are some things you can do with your account.
One option would be to deactivate it, which you can read about here.