Facebook Problems: A Ripple or a Category 5 Alert
March 26, 2019
When hurricanes hit hapless Florida, the devastation is not confined to a single trailer court. Even the big money McMansions can lose their roofs. Fortune Magazine identifies Facebook and its problems in an insightful way in “Facebook Ever-More Vulnerable to Policy Risks, Analysts Warn.”
Financial analysts and politicos see the anti-Facebookism as something different. Different may mean it is time to cash out and distance oneself from the poster child of high school science club management. Unfortunately the quote round up from assorted experts takes an understandably narrow focus.
The write up concludes:
Facebook shares gained as much as 1.3 percent on Wednesday. The stock has rallied 25 percent year-to-date, versus a 13 percent gain for the S&P 500, though it has fallen almost 3 percent in the past year, compared to the market’s 4 percent rise.
The negativism has generated some financial upside.
What’s Fortune ignoring?
In my opinion, Facebook is one of those early warning gizmos the IBM Weather Channel uses to explain that the hurricane forming will be terrible. If the hurricane forms and tracks over Florida, the damage is going to be extensive.
The Facebook problem may take out other properties as well. In Wall Street’s environment, big losses could be a bit of a problem.
Stephen E Arnold, March 26, 2019
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