Down 4% In 2021, Will Facebook Stock Rebound?

After a stellar rally since the market correction in March 2020, social media giant Facebook Inc. (FB - Get Rating) has been in reverse gear over the past six months. The stock has declined 9.3% over the past six months, 6.8% year-to-date, and 8.4% over the past month. Several developments, primarily, Apple, Inc.’s (AAPL - Get Rating) new privacy changes and recent points of contention with the Australian government, have led to the stock’s decline.

FB  recently blocked Australian news services from advertising on its platform following the Australian government’s imposition of a ‘News Media and Digital Platforms Mandatory Bargaining Code,’ which requires FB to pay publishing houses directly for news posts on the platform. However, the company has since reversed its decision and is now renegotiating the terms of the code with Australian authorities.

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Image Source: Unsplash

 

FB – Social media giant Facebook (FB) is in limelight for all the wrong reasons — from Apple’s (AAPL) new privacy changes affecting FB’s core ad business to a current contentious situation with the Australian government regarding payments for news. As a result, the stock has lost 9.3% over the past six months. So, can FB overcome the challenges and recover soon? Read more and we’ll tell you what we think.

On the privacy front, FB has launched a new advertisement campaign, “Good Ideas Deserve to be Found” just as Apple is gearing up to make privacy changes. AAPL’s new App Tracking Transparency policy of asking users permission to track information is expected to hurt FB’s core ad business significantly. This has provoked a strong pushback from FB.

FB is one of the biggest tech companies in the world, with a huge influence on the social media industry. As the owner of some of the largest social media platforms along with its vested interest in the technology and internet connectivity segments worldwide, the company is expected to make a smooth comeback.

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