- 03 Aug 18
Over the past fortnight, Facebook has seen $120 billion wiped off its market value. But that may be only the tip of the iceberg. “It looks like the cops are finally arriving,” one expert observes. We say: better late than never...
It has been a tumultuous fourteen days for Facebook. Late last week, the market value of the Surveillance Capitalist monolith was reduced by an astonishing $120 billion as a result of slower growth in user numbers and advertising revenue, and lowered profit forecasts. That represents a drop of 20%. If the starting base weren’t so high it’d be seen as catastrophic.
Indisputably, however, it is very bad news indeed, because it is a sign that sentiment has started to turn against the company. Who knows where that will end?
What followed that collapse may, in the long run, be worse still. On Sunday, the UK parliament’s Digital, Culture, Media and Sport Committee issued the first of two reports, based on its enquiry into ‘fake news’. There was cold comfort here for Facebook investors. The Committee was devastating in its judgement on the company, citing its “complete lack of moral responsibility” and the shocking “absence of moral leadership.” Which is what Hot Press, and other media – most notably The Observer newspaper in the UK – have been saying for a long time. The world, it seems, is finally catching up.