Well that escalated quickly: FB is now down over 20% from its closing highs, losing over $130 billion in market value and erasing all of post-Q1 earnings gains, making Mark Zuckerberg $16 billion poorer, and officially entering a bear market.
Facebook's earnings rarely miss estimates, and their calls have never sent the stock tanking like this. What gives? Their user growth has been crawling to a halt, their revenue growth rates are plateau-ing, and they've had to hire 10,000 more employees (50% rise). Thus, they expect total expense growth to exceed revenue growth in 2019.
The catalyst for Facebook's demise is Russiagate, which exposed how much their business model depends on selling information that they collect on users (who did not appreciate how much they were being spied on), required them to hire an army of content police in order to placate the Russiagaters' paranoia (which can never be satisfied, given how seething and moralistic it is), and drove so many liberal users off the site (as they forever associate the site with Russia hacking the election, and as their mental stability succumbs to all the political arguing on the site).
Conservatives mostly do not care about Facebook's crackdown on their side -- only once you get to the Alex Jones crowd do they resent Facebook enough to angrily post about it, or even delete their account. The liberal rage against Facebook is far more widespread and mainstream. Here's a representative tweet from MSNBC anchor Chris Hayes:
Facebook is the equivalent of a massively profitable factory that just dumps all of its waste into the river and never has to pay for the cost to clean it up.— Chris Hayes (@chrislhayes) July 25, 2018
Read the replies, too, and hover over their avatar to see how mainstream their bios are. That tweet and its replies came from earlier today, before its stock plummeted. Now search Twitter for "Facebook," and see how many perfectly mainstream liberals are piggy-backing on the news of its stock price collapse with comments like, "Good -- they deserve it for spreading Russian propaganda and letting Alex Jones stay on the site".
Once worshiped by the cult of info-techno-philic liberals, Zuckerberg now finds himself blasphemed as a false god by his disillusioned followers. Every cause behind the recent collapse will only get worse over time -- the Russiagaters, both in the government and in the general population, simply cannot forgive Facebook for its sins and pretend to go back to the way things were before the Trumpocalypse of November 8th, 2016.
The Silicon Valley priests were supposed to protect us from the Anti-Christ, and yet they welcomed him right into the temple. "Helluva temple you got here, folks -- I'm gonna build it bigger and stronger than ever before, but the phony Pharisees probably won't give me any credit, that's okay." Such an abdication of their sacred duties to the community can never be forgiven, and they can never be allowed to have such power, influence, and wealth ever again.
This crippling effect of Russiagate applies also to Google, for failing to satisfy their paranoia about exorcising the Russian / Trumpian demons from their search results and news feeds, but more importantly from YouTube. So far, Google has managed to avoid the Inquisition and its howling mob, but don't count on that lasting forever, as Russiagate only grows more hysterical, and after they've already claimed their Facebook scalp. With the taste of victory in their mouths, they will only feel emboldened to bring down another false techno god that allowed the apocalypse to happen.
Amazon, a retailer, and Apple, a device manufacturer, seem safer from the original Russiagate accusations. So does Netflix, whose content is entirely fictional and apolitical or liberal. But that doesn't mean that the Russiagaters won't end up accusing them of a second-order failure -- to swoop in when the first-order techno gods had failed. We'll have to see how paranoid they get in their blame-casting.
Returning to the matter of which elite sectors can unite to stop Russiagate before it destroys the nation and the world, now we can add Facebook and likely Google into the anti-war column. One has had its material interests obliterated by Russiagate, making it now hostile to the Russiagaters' agenda.
This also reinforces the hostility of the finance sector toward Russiagate, since so many hedge funds and stock market indexes have Facebook's stock as one of their top holdings. The Russiagate mob has just wiped out another big chunk of the investor class's wealth, on top of blocking the investment banks from doing business with any entity connected in any way to any Russian oligarch or to Russia itself.
This should only give the finance and tech sectors all the more motive to expel the propaganda nexus -- the intel agencies and the news media -- from their political coalition of the Democrat party, and to de-financialize them and trust-bust them so that they're less effective at spreading paranoia. Those two propaganda sectors are directly responsible for Russiagate's creation and continued epidemic explosion. If it keeps spreading, the tech companies will become mere arms of the CIA and NSA, and get financially wiped out as no one uses them any longer.