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Facebook lost USD 56 billion of its market value due to the suspension of advertisers


The American company Facebook lost USD 56 billion of its market value after large advertisers joined in a boycott against the social network for its flaws in the regulation of hate messages and fake news.

Facebook's stock price fell more than 8%, and the shares are expected to be worth $ 212.50 each when the markets open on Monday, down from the $ 235 they cost when the markets closed on Thursday.

The Bloomberg agency reported that Facebook's value fell $ 56 billion, adding that the fall had also removed $ 7.2 billion from the net worth of Mark Zuckerberg, founder and CEO of the company.

This stock collapse is the largest the company has witnessed in several months, and is linked to decisions by multinationals like Unilever and Coca-Cola to suspend their social media ads in a campaign against racism.

Consumer product maker Unilever said it made the decision to protest the abundance of hate speech on the internet. Unilever added that the polarized atmosphere in the United States before the November presidential election forces brands to take responsibility for acting.

Unilever, based in the Netherlands and the United Kingdom, joined others that have withdrawn their advertising from social platforms. Facebook in particular has been the growing target of a movement to deny the company advertising revenue to pressure it to do more to prevent expressions of racism and violence on its platform.

"We have decided that from now until the end of the year, we will not have advertisements for our brands on the social media platforms of Facebook, Instagram and Twitter in the United States."
Said Unilever. 

"Continuing advertising on those platforms right now does not offer value for the public and society."
The Unilever boycott is in addition to the one that more than 90 companies have launched in recent days. These include Coca-Cola, Verizon, VF Corporation (which owns Vans or North Face), Ben & Jerry's or film distributor Magnolia Pictures.

Organizations are asking Facebook to more strictly control hate speech and disinformation through more assertive actions on the social network.

Requests include creating a moderators section to receive complaints from users who claim to have been discriminated against because of their race or religion, and letting companies see how often their ads have appeared near content that was later removed by contain misinformation or hatred, and allow them to get their money back in that case.

Last year, Facebook generated some $ 69.7 billion in advertising revenue globally through its advertisers. The platform reported earlier this year that it has more than 8 million advertisers.


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