Internet

Facebook shares down by over 2.5% over senior management exits and NZ shooting live stream

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Facebook is facing the Wall street heat with its sharing falling by over 5% as one of the gunman involved in the Christchurch mosque shooting live streamed the entire incident. This has been perceived by the street as yet another incident wherein the platform has failed to protect such heinous crimes from being live streamed from its platform.

The erosion of company’s market value is also fuelled by multiple senior executive exits that have happened recently. One of the most highlighted of those exits is that of Chief Product Officer Chris Cox. Cox has been with Zuckerberg for over 13 years and has gained massive respect and reputation among Wall Street investors, for his in-depth knowledge of the tech industry.

The impact of Cox’s departure can be seen from a note that JP Morgan wrote, stating, “We believe Cox played a critical role in establishing FB’s mission, values, and culture, and he was extremely well-regarded inside and outside the company, including by Wall Street”. Another exit that has hurt Facebook, is that of Whatsapp VP Chris Daniels.

Some of the biggest internet companies — Google, Facebook among others – are continuing to face massive public embarrassment. While the companies continue to make tall claims about user privacy and data security, their utter failure to control spread of hate speech has started to erode public faith in them. The same can be seen on their financial performance.

There was slight recovery in the company’s share price, with the final close coming in for a 2.6% loss in the price.