In your cart:0 item(s) - $0.00
Facebook's income rises annually to more than $13 bln, thought the growth rate is expected to slow in the future. This slowdown may seem alarming but not crucial. The share prices are still quite affordable. Its net income increased to more than $5 bln. Experts believe that Facebook's eaings is going to go up to 16% in 2019. It trades at historically low prices. Facebook trades at 175 dollars. The Zuckerberg empire is paying for the scandal of leaked personal data. After the announcement that the company will have to invest in a protection system of the social network, Facebook share prices dropped by 23%. What does it mean for investors: time to buy shares or sell them?
After closing the main trading session of July 25, the share prices of Facebook lost 23%, reports Bloomberg. According to the newspaper, the depreciation occurred in two stages: first, due to the financial statements during the main trading, shares dipped by 7%, and then after close of the main trading the price lost 23%. The reaction of investors was caused by the announced plans to upgrade the company. The company requires modeization of the business, which will better protect users 'personal information. The implementation of these plans will require additional costs, which may reduce the rate of growth of economic indicators of the company in the next few years. This is what a possible slowdown in growth to which investors reacted, according to Forbes experts.
Facebook has to fund programs in order to protect personal data of users after a series of scandals involving the leakage of personal data. As it became known in March, the company has leaked data of 50 million users via Cambridge Analytica, which used this information to influence people, including without limitation during the US president elections. Certain investors might be against this business model, or reckon the stock unpredictable. Although, investors that buy Facebook shares during this recession may well get rewarded later when the company gets along and the share price goes up.