Plan to Fire Zuckerberg as Facebook Chairman Drawn Up

Sean Reid
July 28, 2018

Doom and gloom for Facebook, it seems. The platform has been accused of helping violence spread in Myanmar, India and Sri Lanka.

"Mark Zuckerberg isn't panicking", he said.

Mark Zuckerberg did his best in the earnings call to try to spin this decline as something positive for investors-as if making less money was an active choice the company was pursuing to benefit consumers, rather than a side-effect of everything it's being forced to do in the face of growing public concerns. Quarter after quarter, Facebook handily beat sales and profit estimates by Wall Street analysts. A #DeleteFacebook campaign didn't have any "material impact" on the bottom line, COO Sheryl Sandberg said earlier this year.

The company has faced tremendous scandals from both the Cambridge Analytica debacle and many questions from users about fake news and misinformation.

The startling decline comes after Facebook reported user growth and sales that fell short of investor expectations, leading many shareholders to frantically sell their stock on Wednesday night before market close.

Speaking of market-leading tech stocks, Facebook's mega-cap counterparts Apple, Amazon, Netflix, and Alphabet all lost more than 1.5% at their overnight lows, and the Nasdaq 100 index dropped 1.4% in regular trading hours.

This week has seen more embarrassment with the publication of a series of ads sent out on Facebook during the UK's European Union referendum in 2016.

Facebook lost more than $100 billion U.S. in market value Thursday after the social media company posted earnings a day earlier that showed slowing growth. In previous years, companies were not valued as highly as Facebook is so their losses were smaller. The company's user base flatlined in its biggest market, the US and Canada, at 185 million daily users, while declining 1 per cent in Europe to 279 million daily users.

It continues, "In approving this annual security allowance, the Committee considered Mr. Zuckerberg's position and importance to Facebook and the fact that Mr. Zuckerberg has requested to receive only $1 in annual salary and does not receive any bonus payments or equity awards ..."

For Q2, Facebook's daily active users increased 11% year-over-year, to 1.47 billion on average during the month of June. Failure to comply with the regulations would see the sites blocked in the EU.

"GDPR was an important moment for our industry", Zuckerberg said on Wednesday. "This is our responsibility to keep people safe". While several analysts downgraded the stock, others say they still have faith in the company to grow over the long-term.

Facebook just made the wrong type of history.

"The Teflon has been scratched away", said Bob O'Donnell, head of Technalysis Research. "Real world issues that people thought should affect the company are now affecting the company".

Facebook hit the headlines earlier this year when it came to light that Cambridge Analytica had used data, harvested from Facebook users, to target USA voters with personalised political advertising, based on psychological profiles. "We run the company for the long term, not just for this quarter", he said.

Other reports by

Discuss This Article