Facebook sees $ 60 billion market value wiped out in just 2 days as advertisers like Starbucks and PepsiCo stop spending on social media

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  • Facebook’s shares fell about 1% on Monday as more and more advertisers boycotted its platform. The drop follows an 8.3% drop on Friday amid the first wave of advertising.
  • The two-day drop in inventory led to the erasure of approximately $ 60 billion in market value from Facebook’s market value.
  • Starbucks, PepsiCo, Coca-Cola, Unilever and Verizon have all suspended advertising on Facebook and, in some cases, other social media platforms.
  • BMO Capital Markets analyst Daniel Salmon said the boycott would not significantly harm Facebook’s revenue, the group having more than 8 million advertisers.
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Facebook’s shares fell about 1% on Monday as more advertisers joined the boycott of the social network. The continued decline follows an 8.3% loss on Friday in the first cycle of withdrawn ads.

The two-day drop in inventory led to the erasure of approximately $ 60 billion in market value from Facebook.

Starbucks, PepsiCo, Coca-Cola, Diageo, Unilever and Verizon have all stopped advertising on Facebook and, in some cases, on other social media platforms. Several high-level executives have called on the social media giant to do more to fight the spread of disinformation and hate speech on its platform.

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Facebook responded with political adjustments. He plans to label announcements that discuss the vote to direct viewers to accurate information, ban a wider range of hate speech, and mark messages from politicians who violate his standards as “newsworthy” for indicate why they have not been deleted.

The boycott, however, is unlikely to do much damage to Facebook’s revenue, as it has more than 8 million advertisers, BMO Capital Markets analyst Daniel Salmon said in a research note.

He added that the greater financial impact could result from increased pressure on Facebook to invest in safety and security in the years to come.

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Screen shot 2020 06 29 at 10.17.02 AMInitiated markets

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