Facebook Stock’s Familiar Crisis Cycle: Decline, Rebound, Repeat
- Company hasn’t taken long to recover from past incidents
- Woes have included Cambridge Analytica scandal, pandemic fears
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Facebook Inc.’s shareholders had a rough start to the week, facing an unprecedented global outage of the company’s sites and a damaging interview by a former insider turned whistle-blower that sent the stock down nearly 5% on Monday.
But as is often the case with Facebook, the dip didn’t last long. The stock rebounded 2.1% Tuesday -- despite that same whistle-blower appearing before a Senate subcommittee, claiming the company routinely puts its own profits before user safety. The testimony was powerful enough for Senator Ed Markey, a committee member from Massachusetts, to threaten Facebook’s co-founder and chief executive officer with regulatory control.