Perfect storm for Facebook share price

It is a battle that Facebook chief executive Mark Zuckerberg can ill-afford to lose. In July 2018, Facebook share price suffered a brutal decline, falling from USD218 to USD172. The devastating plunge of Facebook share price wiped out at least USD140 billion market capitalization from Facebook’s valuation. The frightening meltdown was largely attributed to its poor Q2 earnings and also a series of bad news. Since then, Facebook share price never looked back, continuing to roll down the slope.

For a social media giant like Facebook, its stock performance will always be measured by revenue growth. Indeed, for Q2’18, the revenue was an impressive 43% increase year-on-year. Thus, widespread concerns over its slowing growth had been grossly misplaced and blown out of proportion. For Q3’18, Facebook continued to achieve great revenue growth, recording 33% increase year-on-year.

Apart from its outstanding earning performance, another significant investment merit of Facebook …