Facebook: Big data technologies

Anything and everything related to the technology sector be it software, hardware, or anything in between, is a part of tech stocks. Over the years, big tech stocks like Apple, Google, Facebook have gained massive popularity and their performance is often treated as indicators of the situation of an economy.

Naturally, everyone wants a piece of this cake. As the big tech companies have been leading the stock markets and even the COVID-19 pandemic; they have thrived amid a lockdown economy. 

It is even believed that the big tech has stood strong and has played a vital role in the rapid resurgence of the stock market after the initial crash in early 2020.

One such closely watched big data technologies company in the stock markets is Facebook which has had its fair share of ups and downs in the past years. The biggest jolt to the company’s reputation came in 2018 when it was slammed with privacy violations in the US and European Union and other assertions like being the vessel of fake news propaganda etc.

One extremely high bump on Facebook was the Cambridge Analytica data scandal that massively shook the public faith in the company. I believe this was the time where doubts regarding Facebook’s dependability rose as high as its stock prices fell.

What makes the story interesting is that even two years and a pandemic later, Facebook has been performing well on the stock markets and prices continue to show signs of rising. So maybe, despite all the setbacks it has faced over the years Facebook is the surprise winner after all?

Let us take a deeper look.

Facebook’s opportunities for progress

Thanks to the shutting down of economies and quarantine protocols being in place The dependability on social media and the number of users has widely increased. It is predicted that even after the crisis ends, Facebook is likely to retain its relevance and keep its place in the markets.

Barring the 2018 scandal and some recent bumps, the company has continued to show massive potential and has made extensive returns to its investors. This stock history is likely to play a positive role in the company’s performance in the coming years.

The revenues from ads for Facebook have proven to be another opportunity for escalation in the company’s profits as businesses moved online. However, there is a possibility of a decline in this as economies around the world open and move away from the virtual world and get back to physical reality.

Facebook-owned Instagram is showing a promising future for the company as Instagram Reels takes over Tik Tok users and continues to rise. The global political tensions have certainly played out in the favor of this tech giant. The revenue returns in the coming months are expected to be high.

Apart from taking over the market from TikTok, Facebook has also ventured into e-commerce where it has expanded social media to include shopping experience in the form of a marketplace. The attempt is called Shops and displays massive potential for high long-term profits.

Some looming threats for the company

The biggest threat to the company is the legal battles it has going on in various parts of the world. From privacy breach suits to antitrust proceedings, the company has had to pay many millions of dollars in hefty fines and penalties.

This threat is a continuous hurdle to Facebook's growth in terms of stock price.

The company has also shown disappointing attempts to control the spread of hate speech, online abuse, and fake news.

The company witnessed a plummet in the stock price in the middle of 2020 as the high profile big-name companies like Coca-Cola, Starbucks, and Levi Strauss announced a boycott of Facebook’s ads services.

This was done to show dissent from the spread of online hate speech on Facebook. Until the company resolves these imminent issues with its policies, the company is likely to face a similar situation again.

Conclusion

Facebook has majorly been on the better side of stock prices. The question is whether Facebook will be able to fare well in the face of the uncertainties it faces due to its decreasing public trust as the company fights more and more legal battles with every passing day. 

If you are looking to kickstart and scale your career as a freelancer, Freedom2Work can help provide a stepping stone to making your dreams come true. Our experts at Freedom2Work help you apply for a freelance license and even a residence visa. Get in touch with us through the following details today!

Website: https://freedom2work.com/

Address: 213, Vakson Commercial Building, Umm Al Sheif, Sheikh Zayed Road, Dubai, UAE

Phone number: 800-FREEDOM (373 3366)

Email: info@freedom2work.com

Frequently asked questions

1. What are the big tech companies?

• Technology companies Amazon, Apple, Facebook, and Google are often referred to as the Big 4 or the Big Tech who dominate their respective fields.

2. What is the problem with Facebook Privacy?

• Facebook has been facing legal battles for its lack of privacy to users in many jurisdictions. This is because Facebook generates its revenue by selling the information of its users to third parties. 

3. How many users does Facebook have in 2021?

• Facebook has nearly 3 billion active users at present. More than 1.5 billion of these people are visiting the website on a daily basis and are regular users.

4. How much of Facebook’s revenue comes from advertising?

• In 2020, Facebook generated nearly 98% of its global revenues through ads and the rest was generated through payments and other fees. 

5. What is Facebook Marketplace?

• Facebook Marketplace, as the name suggests, allows users to shop and sell items by listing and describing the product. Anyone living in the area can find the product and message you if they wanna buy it.