FB - Facebook and the symphony of destruction!
Let's go through on what brought, one of the most prestigious companies of the planet on the social network business. Into the path that crushed their reputation
Cambridge Analytica Scandal- 17/03/2018:
The scandal is dated backed in 2014, based on the recent investigations, where the data of at least 87 Facebook profiles are harvested by the Cambridge Analytica, for politics manuevers and behavior manipulation. Politicians around the world took advantage of this tool to manipulated the public in order to get votes. CEO Mark Zuckerberg's had to testify in the Congress about it such misconduct and mistreating of personal information of the users. That was one of the firstest and biggest steps of the company into this one way of disgrace and a probable fine of $6.9 bn. By this time the campaign #DeleteFacebook gained traction.
Security Breaches - 28/09/2018:
Facebook discovered back them a security breach that allowed a virtual attack to the 50 million accounts, the breach could have extended to third-party apps, that the users logged in through the Facebook.
The privacy issues - 15/12/2018
A bug has affected at least 6.8 users where developers of third-party apps could see photos of the users without there hadn't posted yet. Back in June, a glitch made 14 million users posts don't stay private as first intended.
This sequence of events led Facebook to lose trust and reputation ( Facebook lost the 43º place in the rank straight to the 94º place of the list). Facebook users have dropped like never before. We have to stay sharp about this, because different from other model business, social networks usually don't gain back the trust of the users so easily, since the sector changes fast and competitors are ready to hunt down the business, like a pack of wolves, at the first sign of weakness and Facebook has made too many of them.
But if you are thinking about Instagram as hope for profits and survival, keep in mind that the U.S. FTC is considering block the Instagram acquisition. If that becomes a reality, we can take this as a possible end of the road for the company.
The technical details about how this could plays out in the price are highlighted above at the chart.
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