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Facebook Shares Sink Midday as PR Problems Persist

Published 11/16/2018, 12:00 PM
Updated 11/16/2018, 12:05 PM
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Investing.com - Facebook’s public relations problems continue to be investor relations problems as the stock sank in midday trading.

Facebook (NASDAQ:FB) stock fell about 4% at 12:05 PM ET (17:05 GMT).

The S&P 500 Communication Services index was down about 1%.

The company has endured intense scrutiny over its business practices following a New York Times article with the headline beginning “Deny, Deflect, Defend” about how the company fought criticism of its handling of Russian influence and propaganda on its platform.

Facebook CEO Mark Zuckerberg and COO Sheryl Sandberg have been on the defensive amid calls by some for change at the top of the company.

Sandberg said in a post Thursday she did not know Facebook hired a PR firm that tried to tie grassroots Facebook protests group to George Soros, but also said she “should have.”

Criticism from other outlets about the company has been swift, with blistering articles coming from publications like Bloomberg and Slate.

All this is adding further pressure to a stock that is still reeling from a July earnings plunge.

Shares are down about 24% in the last six months.

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