What Realistically Happens Next To Facebook

The market, advertisers, and Congress likely won’t challenge Facebook. Some other things might.

Alex Kantrowitz
OneZero

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The question of whether this round of scandal would do immediate, direct damage to Facebook seemed settled soon after the Senate adjourned its Tuesday hearing. Facebook’s two most important stakeholders — investors and advertisers — didn’t run away after whistleblower Frances Haugen testified that it harms teen girls’ mental health and profits from outrage. They already knew the drill.

“This is gonna effectively be a storm that comes through,” Jeffries analyst Brent Thill told CNBC Wednesday morning. “And in past storms, this has been a great buying opportunity.”

Facebook scandals tend to run hot and cool down quickly. About once a year, something startling comes out about the social network: A campaign illicitly uses its data to psychologically profile voters; the company lies to advertisers and publishers about crucial metrics; its own researchers find it’s dividing a society it hopes to bring together. Then, after a round of outrage from U.S. lawmakers, everything returns mostly to normal. The…

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Alex Kantrowitz
OneZero

Veteran journalist covering Big Tech and society. Subscribe to my newsletter here: https://bigtechnology.com.