Facebook and Wall Street, ten years of an eventful relationship

Since its IPO on May 18, 2012, Facebook, which has become Meta, has had its share of twists and turns. The company grew, with the acquisition of WhatsApp and the invasion of the metaverse universe. He had to manage his share of scandals, and more about the American presidential election and Cambridge Analytica. It also suffers from the arrival of new players, such as TikTok, who have come to take market share out of it.

Focus on 10 year ups and downs for Facebook/Meta stock.

By Maxime Delrue | May 18, 2022

growth Benjamin Verboogen

May 18, 2012

A disappointing IPO

Facebook CEO Mark Zuckerberg took his company publicly from the company’s California headquarters. Source: Imageglobe

On May 18, 2012, Facebook raised $ 16 billion in the largest IPO since a technology company, costing it $ 104 billion. But the action was disappointing and fell to a historic low, at 17.73 dollars, in early September.

READ MOREFacebook fell for its first steps into the stock market

December 23, 2013

The S&P 500 welcomes Facebook

These difficult beginnings did not stop Facebook from joining the S&P 500 a year and a half after its IPO. This benchmark index includes the 500 most important companies in America in terms of market valuation. It was the industrial company Teradyne that gave way to Facebook.

A week earlier, the action was welcomed when the change was announced and took 4% in electronic trading after the session.

February 19, 2014

Facebook offers WhatsApp

This is the most expensive acquisition to date in the history of Mark Zuckerberg’s social network. In February 2014, Facebook spent nearly $ 22 billion to acquire the WhatsApp messaging application. With its 450 million monthly users and a number of messages sent approaching the worldwide SMS volume, the service has something to appeal to.

In the markets, investors weren’t impressed, though: Facebook’s title fell 4.50% after a market sale, to settle for $ 65.
READ MOREFacebook will pay $ 22 billion to buy WhatsApp

2016

Russia’s interference in the US presidential election

In 2016, Facebook was accused of allowing Russia to influence U.S. elections. The CIA admitted in a report that Moscow was interfering through digital operations with the specific purpose of selecting Republican candidate Donald Trump.

Facebook revealed the following year that hundreds of fake Russian profiles had bought ads to heighten tensions ahead of the U.S. election in which Donald Trump won.

March 17, 2018

Cambridge Analytica is accused of influencing Trump’s election

Facebook’s image was also damaged in 2018 due to the Cambridge Analytica scandal, a British company accused of unknowingly collecting data on 50 million Facebook users to promote Donald Trump’s victory.

Zuckerberg explained himself to the Committee on Justice and Commerce of the U.S. Congress following the revelations of the Cambridge Analytica scandal.  Source: Reuters

Zuckerberg explained himself to the Committee on Justice and Commerce of the U.S. Congress following the revelations of the Cambridge Analytica scandal. Source: Reuters

Following these revelations, Mark Zuckerberg will continue to grill at the American Congress in April 2018. He will also explain himself to the European Parliament.

In less than a month, Facebook’s stock market value showed a loss of more than 100 billion dollars as the action suffered a drop of almost 16%.

READ MOREThe Cambridge Analytica scandal is just the tip of the iceberg

June 18, 2019

Facebook wants to revolutionize the (crypto) currency

In June 2019, Facebook officially announced the creation of its virtual currency, with a launch vision for 2020. Things can easily get complicated, especially with a dismissal issued by the American central bank. Concerns about the stability of the financial system got the better of the project, which aims to make payment as easy as sending a message via Messenger or WhatsApp.

READ MOREFacebook is suppressing cryptocurrency ambitions

December 9, 2020

The U.S. competition authority is taking over the Facebook octopus

The U.S. competition authority, the Federal trade commission (FTC), and 48 states have filed a complaint against Facebook. They believe the company has a dominant position in the social media market, with its historic product, but also Messenger, WhatsApp and Instagram.

In fact, 70% of Americans active on social networks have an account on at least one of the various Facebook platforms. It’s too much for the authority to suggest, in particular, the sale of WhatsApp and Instagram. The complaint was rejected, but a revised version will be reintroduced in 2022 and considered acceptable. It has not yet been judged.
READ MOREMeta, at the head of a monopoly? Justice must judge

June 29, 2021

Facebook hit $ 1 trillion in capitalization

After Apple, Microsoft, Amazon and Alphabet, Facebook joined the exclusive club of companies whose market capitalization, i.e. the number of shares in circulation multiplied by their value, exceeded 1,000 billion dollars.

Like many web gamers, Facebook is taking advantage of the global Covid-19 pandemic, pushing many governments to limit social interactions in the physical world and increase use of various online social services.

Between February 2020 and June 2021, the stock rose more than 60%.

Oct. 28, 2021

Facebook has become Meta

Mark Zuckerberg announced that Facebook is changing its name to Meta. A change that also reflects a new ambition: the construction of its metaverse, where the public has access to work and leisure.

Mark Zuckerberg presents his avatar in the metaverse that he seeks to promote.  Source: Reuters

Mark Zuckerberg presents his avatar in the metaverse that he seeks to promote. Source: Reuters

The announcement comes weeks after whistleblower Frances Haugen, ex-head of the Facebook product, revealed with help from the Wall Street Journal that her former employer had done nothing significant to cure her ailments. mental health consequences of teenagers especially …) and is known to lie to its users, investors and legislators on the issue.
READ MOREObjective metaverse Frances Haugen, Facebook’s silence spokesperson

Feb. 3, 2022

Facebook stagnates, Meta will lose 25% of its market value in one session

After announcing a decline in profits, Meta lost more than a quarter of its stock market value, wiping out more than $ 200 billion in valuation, unheard of on Wall Street.

Meta, which spends itself by displaying targeted ads to its users, is embarrassed by Apple. The Apple giant has updated the iPhone’s operating system, requiring, for example, every application to get users ’permission to be tracked for advertising purposes.

In addition, Facebook, which was left at least in favor of other networks, such as Tiktok or Snapchat, admitted to losing, for the first time, a million active users per day. It still stands at 1.96 billion, or about un-quarters of the world’s population.
READ MORETo the worst month for technology stocks since 2008 Meta (Facebook) collapsed at the opening of Wall Street

March 11, 2022

The European Commission has opened an investigation into an agreement between Google and Meta

The European Commission has opened an investigation into the deal that hit Google and Meta in 2018, which is suspected of violating European Union (EU) competition law.

Europe suspects Facebook and Google of manipulating, to the detriment of their competitors, the system that determines what ads are displayed on web pages according to an anonymous Internet user profile – which could be condemned as an anti -competition or abuse of a dominant position in the EU.
READ MOREBrussels opens an investigation into a Google-Facebook deal related to advertising

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