Facebook has reversed its first ever decline in usage after Mark Zuckerberg’s appearance at US Congress in light of the Cambridge Analytica scandal. This seems bizarre as it was only been a few weeks since the BoycottFacebook movement was trending on Twitter. So why has this happened? Shouldn’t Facebook’s stock fallen through the floor?
Well initially it did. The Cambridge Analytica scandal wiped billions off of Facebook’s share price. And of course, this deterred investors, but apparently not users. In the early part of 2018, users in North America were down to 184 million. However, this came back up to 185 million in March 2018. According to CNN, Facebook now has 1.45 billion daily active users worldwide and 2.2 billion monthly users, both of which are up 13% year over year, so this scandal has not dented the usership of the worlds biggest social media platform.
So there are two stories of Facebook. Facebook as the social media experience has not, at least in the short term, been affected by the privacy and data scandal. This is not necessarily what will happen in the long term, and, this may be Facebook’s sink or swim moment, to see whether it becomes a long-term part of our lives, or only lasts 15 or 20 years. Many scandals of this magnitude would have closed down mang large companies, but these new huge corporation can ride this kind of issue out, at least for the user.
The other side of Facebook is what the stock market sees, how Facebook operates as a business. After this announcement by the company on 25 April, the value of the company soared by 7%. It hasn’t taken it back to its high point of $193 per share price, but it has come back from $152 to $166 per share in less than a month. This is around the same share price that Facebook had in July 2017, and since then, the data scandal has only set the share price growth back around 9 months. So even though the scandal has seriously affected the business, it has ridden it out remarkable well.
However, what we want to ask is why is this important to us? What is Facebook and other social media platforms doing with our information which is making them billions each year? Well, we are not convinced that they are doing anything evil or illegal with our data, but we should be completely aware of where our data goes. And these social media platforms do give us that information, you just need to know where to find it.
We have built some free Discovery Paths on social media platforms and privacy to help you get a better idea of what happens to our data online, and how to protect your information from getting into the wrong hands.
Check them out, for free, here: