Damaging revelations about how Facebook’s leaders mishandled Russian efforts to disrupt the 2016 American election are beginning to take a measurable toll, with the company’s stock plunging to a yearly low.
Facebook and Google parent company Alphabet stocks are now down for the year. While Facebook turned negative a few months ago, Alphabet became the second major tech company to go negative.
Apple was worth more than $1 trillion at the start of November. Now, it’s valued at $880 billion.
“These stocks have been crazy swingers this year,” Stacey Gilbert, head of derivative strategy at Susquehanna, told CNBC’s “Trading Nation” on Monday. “If the market loves you, they were up. If the market hates you, they were certainly down.
Of the lot, Facebook stocks have been hit the hardest. This morning, the price hit a new low of $126.85, which is more than 40% below its high in July of $218.62. In total, Facebook’s value has dropped by over $253 billion.
Facebook’s latest challenge is coping with the fallout from the New York Times report last week that detailed company’s efforts to ignore, then attempts to minimize, the foreign influence campaign on its platform.
The Wall Street Journal reported that CEO Mark Zuckerberg is feeling embattled, as the company fends off attacks from lawmakers, investors and angry users, some of whom have revived the social media call to #DeleteFacebook.
Some aren’t as negative on FANG. The stocks’ respective declines and death crosses may indicate they’re about to enter into a trading range, said Ari Wald, head of technical analysis at Oppenheimer.
“Every major decline starts with a death cross. But the thing is, not every death cross leads to a major decline,” he said Monday on “Trading Nation.”