Ask HN: Why is Facebook Stock back up again after advertisers leave? - catsarebetter
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samizdis
Possibly because the market sees the hit to the share price as overdone.

This from the FT [1]:

> Analysts have been quick to note that the impact of the boycott on
> Facebook’s annual revenues — which topped $70bn last year — is likely to be
> negligible, since three-quarters of its advertising earnings come not from
> the deep-pocketed brands leading the campaign but from small and medium-
> sized companies.

[1]
[https://www.ft.com/content/2970cf91-dcf7-4424-bdc9-b6d92ad72...](https://www.ft.com/content/2970cf91-dcf7-4424-bdc9-b6d92ad72d67)

Syndicated, non-paywall version:

[https://www.bizjournals.com/albany/news/2020/07/01/facebook-...](https://www.bizjournals.com/albany/news/2020/07/01/facebook-
advertising-boycott-response.html)

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catsarebetter
Ah thanks for that

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buboard
Did they really leave? I.e. did they spend all that ad money elsewhere? Or are
they just pretending?

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dougbarrett
that was my thought, they could be just buying through another company.

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catsarebetter
I'm pretty new to this so pardon me for asking, does this mean that FB can
sell ad spots through interim companies?

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samfisher83
We have massive unemployment. A disease with no end. Massive deficits. Massive
Debt. Yet we are at an all time high. Trying to predict stock prices is hard.
In general the markets will go up, but trying to predict day to day prices is
hard.

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mwkurian
Likely because of an overall rebalance due to COVID. When other sectors are
hit, tech is resilient overall (at least for now). So rebalance stock
portfolio towards tech. Facebook is getting the benefit of that as well.

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kostarelo
Not really an answer but I'm curious to see why you think those incidents
should have affected the stock price of FB?

I mean I wouldn't expect the average long-term investor to be bothered by
something like that.

