Facebook tanked again on Monday.
The stock has now plummeted 13 percent in November amid fresh controversy over how it deals with misinformation and reports of turmoil in the C-suite. Facebook is now 39 percent from record highs reached in July.
Here's what three experts have to say:
- Victor Anthony of Aegis Capital is not worried about Facebook, a stock he has made his top large-cap pick for the next year. "What's most important for investors of Facebook is whether or not these negative headlines are putting pressure on user growth, whether or not users are fleeing the platform, and whether or not advertisers are fleeing the platform," said Anthony. "I'm not seeing people leaving the platforms en masse."
- Jason Calacanis of Angel investor says this unrelenting wave of criticism from all sides presents a real problem to Facebook, but that its scale should help it survive. "This is a true crisis for Facebook and I think this could be – it's possible, maybe not probable but possible – this could be their AOL peak, their Yahoo peak," said Calacanis. However, "Facebook is a whole different scale. It's 2.5 billion people so I don't think they're going anywhere anytime soon."
- Joel Kulina of Wedbush says problems in the company have been evident longer than this month. "If you go back to that earnings report back in July, they missed across the board and what really jumps out at me is that we're seeing declining daily and monthly active users in North America or stalling active user metrics in North America, declining in Europe and the only regions that are seeing growth is in Asia where the average revenue per user is much lower than the Western world," Kulina said.
Bottom Line: Facebook will likely survive this storm, but the strength of its long-term growth trajectory is not a given and the company still needs to sort out its platform kinks.