Mark Zuckerberg, Founder and CEO of Facebook, expressed that the reason he created the social media site was that he wanted a medium where people could go and learn things about others. He said it’s not what was portrayed in the movie “The Social Network”, unfortunately.
Facebook has since then become a phenomenon. The 12-year-old social media network connected people in ways they never would have imagined, and it continues to evolve and innovate from time to time. But not all success stories will end on a good note. Some will hit rock bottom, and might even stay there forever.
From becoming the number one social media platform for people around the globe to having a market high 54% of stocks, there is no doubt that Facebook has a lot to offer. It even made it to the big five tech stock such as Facebook, Apple, Amazon, Netflix and Alphabet or what is more popularly known as FAANG.
The FAANG Stocks consist of the following:
- Facebook – Established in 2004, Facebook functions as an online social networking site that lets people interact, discover, and share information with one another.
- Apple – Apple designs, manufactures, and markets different electronic products. Timothy Cook is the CEO of the company, which was founded in 1976.
- Amazon – The Washington-based online retail platform sells household appliances, electronic products, apparels, and books. Jeffrey P. Bezos is the Chairman and CEO of Amazon.
- Netflix – Founded in 1997, the California-based company is a global internet television network that streams movies and TV shows. Netflix is headed by Reed Hastings.
- Alphabet – Alphabet owns and runs some companies that are tied to Google. Larry Page is the CEO of the California-based company, which was established in 2015.
These companies are the five best performing and most popular tech stocks in the market as of today. Wall Street grouped the FAANG Stocks in order to know their impact on the markets and the society.
Facebook and the other FAANG Stocks have a total market capitalization of $2.415 trillion, which is equivalent to 13% of the size of stocks in the U.S. economy.
Experts say that the leading social media network has the ability to take the FAANG Stocks to its prime, especially now that Facebook is starting to monetize its subsidiary, Instagram, a photo-sharing application.
Everything seems to go smoothly for Facebook, but the blockbuster profits and amazing market growth might have taken a toll on it.
Facebook had a perfect start when it came out in February 2004, but now, ‘fake news’ controversies are beginning to haunt it. Many became aware of the existence of fake news when groups from Russia were said to have spent $100,000 just to propagate fake news posts on Facebook during the U.S. 2016 election.
The company promised to hire more people in order to check, edit, and monitor the things that are being posted on the site. Facebook’s operating expenses will also rise for about 60% in 2018 because of this issue.
The fake news controversy definitely made people think twice about the accuracy level of Facebook. And it is not the only issue that the social media network is facing at the moment.
Other unfavorable things that Facebook unintentionally offers to the society are the following:
- False sense of connection
- The negative impact of cyber-bullying
- The suspicious security measures on privacy
- The future decrease in its productivity
Experts even emphasized that the direct hit Facebook is receiving from these issues will have a negative impact on the society in the next 10 years. This might lead to users abandoning the site for good.
Facebook is currently experiencing the glory days of having high market values and even continuous growth on its user base. But in spite of hitting the road to success, the leading social media network might soon find itself falling when issues like the ones mentioned are not given the proper solutions. And if that happens, experts just might declare a tou·ché.