The self-inflicted wounds that led to this week’s historic stock sell off
On Thursday, Facebook suffered the biggest stock sell-off in U.S. history, $119 billion in one day — a sign investors no longer have faith in the company’s story or brand.
This sell-off came just a week after CEO Mark Zuckerberg explained to the mediathat he would not take down web sites with information known to be false, including Holocaust denial.
That kind of baffling blunder suggests a corporation and CEO that has lost its way entirely, that simply has no idea what its brand is.
“This is pent-up anger, and the markets exploded at Facebook,” marketing professor Scott Galloway, author of a book on the tech giant, told Yahoo. “It’s deeper than a one-day sell-off. It’s like when your husband screams at you for leaving the garage door open. It’s not about the garage door. It’s about something else.”
- Facebook has never had a coherent brand story.
- Facebook isn’t in sync with its customers on the core value of privacy.
- Zuckerberg turned Facebook into the world’s biggest media company, but even to this day he refuses to accept the many responsibilities that role entails.