Facebook's stock has lost more than 30% of its value since July. The drop was revealed when the social media giant's stock opened at $150.13 on Thursday.
The loss of value reflects a year of scandals, in particular the Cambridge Analytica scandal which broke in March this year where it was revealed that the personal data of 50 million Facebook profiles were harvested unbeknownst to the individuals in question. This has led to widespread criticism that the platform has been hijacked by bad actors and led to investors losing faith and interest in investing in the product.
More recently, Facebook dealt with the rumors circulating around its CEO Mark Zuckerberg's interference with Instagram, which resulted in the sudden resignation of the photo-sharing site's co-founders, Kevin Systrom and Mike Kriege, in September.
Check if you are eligible for free entry to the must-attend event for finance leaders, CFO Rising West in San Francisco, on October 17–18, 2018. Tickets start from $1,695 or are free for first-time attendees eligible for a VIP Pass. Apply with this simple form here: http: //bit.ly/2pF2U0B
"Facebook's very public splits with the founders of Instagram and WhatsApp, two of its biggest acquisitions, could make it harder to convince the next Instagram or WhatsApp to join Facebook in the future," pointed out CNN.
Facebook stock has been devaluing at speed since it faced the biggest wipeout in stock market history in July after it told investors that the company's ad sales machine was likely to slow as it worked to "put privacy first".
Adding to the problems, the introduction of its video-calling device Portal, Facebook's long-awaited introduction to the hardware market, was hampered by the trust issues that have plagued the company this year.