Why is Facebook’s stock price falling
Why Facebook’s stock price plummets after an earnings release can be caused by a variety of factors. These can include a few of the main ones:
1. Performance is not meeting expectations
Investors expect companies to report earnings that exceed expectations, but if Facebook’s revenue or profit misses estimates, its stock price can plummet. This can lead to investor disappointment.
2. Uncertainties and Future Prospects
Another reason is if investors are uncertain about a company’s future prospects. If Facebook is losing out to competitors in the race to launch new services, or if there are concerns about future growth due to regulatory or trust issues, the stock price may fall.”
3. Market-wide impact
Market-wide influences can also affect Facebook’s stock price. Overall market conditions or economic conditions can change investor sentiment toward technology stocks or large company stocks, which can also affect Facebook’s stock price.
Same reasons as above