On Tuesday, what are called FAANG stocks — Facebook, Apple, Amazon, Netflix and Google — were down more than 20 percent from their highs. But Facebook is now beginning to rebound.
And, despite all the recent volatility, an investment in the social-media giantat the time of its initial public offering on May 18, 2012, would have been a safe bet. A $1,000 investment then would be worth more than $4,600 as of Nov. 21, according to CNBC calculations, including price appreciation and dividend gains reinvested.
And the company still faces a number of challenges.
CNBC: Facebook stock as of Nov. 20, 2018.
On Tuesday, Facebook shares hit their lowest level since February 2017 and were poised to close their third straight month in the red. That would mark the company's longest quarterly losing streak since 2013 and its first full year of losses since its IPO. Shares have declined about 25 percent so far this year.
This series of losses come amid criticisms of chief operating officers Mark Zuckerberg and Sheryl Sandbergfor their handling of several high-profile issues, including Russian attempts to influence the U.S. election in 2016 and the Cambridge Analytica scandal, and signs that the company may have a hard time continuing to grow at a rapid pace, especially as younger users peel off.
So many investors remain wary. "The market has been absolutely punishing companies with decelerating growth and that's exactly what you're seeing with Facebook," said Mark Tepper, chief executive officer of wealth-management firm Strategic Wealth Partners, on CNBC's "Trading Nation."
"I don't think there's any light at the end of the tunnel anytime soon. They're making some pretty aggressive investments to deal with improving their ad transparency, getting rid of fake accounts, eliminating fake news, and that's going to be a drag on profits in the near term."