June 30, 2020
Update (15:18ET): The list of companies pausing advertisements on Facebook continues to grow by the hour.
CNBC reported moments ago that Adidas and Reebok had suspended advertisements on Facebook and Instagram through July.
A separate report via Axios indicates Microsoft has also paused advertising on Facebook and Instagram.
Reuters notes that Ford Motor Co is planning to halt advertising on the social media platform for the next 30 days.
And now, HP Inc. has said it will pause advertising on Facebook, as it must review its social media strategy.
CNBC provides a snapshot of some of the companies “unfriending Facebook” as a mass exodus of advertisers has been seen in the last several days.
Facebook shares gaped down at cash open on Monday – only to rebound by late afternoon, up over 1% – additional news of Adidas, Reebok, Ford, HP, and Microsoft pausing advertisements has led to shares slumping in the last hour of cash session.
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Facebook shares are set for the second day of declines as a boycott of advertisers on the social media platform is quickly gaining momentum.
The list of major companies that have said they’re decreasing or halting ad spending with Facebook is growing:
And now, Bloomberg reports that Starbucks Corp. and Diageo Plc. would also be pulling back on spending. Facebook shares tumbled over 4% in pre-market trading on Monday before bouncing back modestly after plunging 8.3% on Friday after Unilever, one of the world’s largest advertisers, halted advertisements on the social media channel. From last week’s high, shares are down 16%.
Robinhood traders panic bought Facebook shares over the last several months.
Now it seems Washington Post is going after Facebook’s CEO Mark Zuckerberg…
(WaPo) – Hours after President Trump’s incendiary post last month about sending the military to the Minnesota protests, Trump called Facebook chief executive Mark Zuckerberg.$FB https://t.co/rBpzC1cYwI
— Carl Quintanilla (@carlquintanilla) June 29, 2020
Could Facebook shares be putting in a cycle top? Or is this a more coordinated effort to shift all Ads to Google – which is perhaps less inclined to allow free speech from both sides of the aisle?
This article was posted: Tuesday, June 30, 2020 at 3:27 am