Being a social media app, Facebook often faces backlash as one of the most popular apps in the world. Contrary to popular belief, Facebook isn’t just used by your parents. In fact, politics plays a big role on the app, especially for the former president of the United States, Donald Trump. Trump didn’t use it as much as Twitter, but he often campaigned there, and his ideologies spread like wildfire. Facebook didn’t regulate this, but the tipping point came at the beginning of 2021. Approximately 4 months ago, when Trump supporters infamously stormed the US Capitol, Facebook, along with other social media apps, decided to ban Trump from using the platform. This was because the riots started after Trump spread misinformation about the 2020 election he lost, and democracy was at stake. It was a groundbreaking decision for social media as no one of that power was ever silenced.
However, on Wednesday, the Facebook Oversight Board called a meeting to review Trump’s ban. Their decision was very interesting and addressed both sides. The board voted to continue Trump’s ban and decided to reevaluate it in 6 months to make a further decision. They felt that the indefinite suspension was wrong, which had many puzzled. Other social media apps like Twitter haven’t looked back at all, keeping the ban permanent as people were in danger. Critics of the ban claimed that it was violating free speech, but Facebook kept their stance strong, saying that leaders cannot incite violence on the app. Trump obviously bashed Facebook for the act, but the debate between liberals and conservatives is continuing to heat up with the new ruling.
It’s possible that Trump doesn’t need Facebook at all; on Tuesday, he announced his new way of communication, something that is described as a glorified blog. Trump releases statements on the website in the form of blog entries, giving him a new way of communicating with supporters. You may be asking, what’s in line for Facebook’s stock? The biggest risk is the argument regarding someone’s freedom of speech. Many users can shut off Facebook as a boycott, knowing that what they say could possibly be censored. This would be problematic for the stock, but it’s likely that they will continue to chug through. Do you think Facebook stock is at risk?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.