Elder Patriot – Facebook’s stock price has dropped below $132 per share in trading today in what has been a precipitous plunge from the stock’s high point of 218.6 reached in late July of this year – less than 4 months ago.
The last time Facebook’s stock price was this low was two days after Donald Trump’s inauguration.
This wipes out two years of growth that began during the lead up to the 2016 presidential election when conservative bloggers were using Facebook’s platform to engage in an end run around the mainstream leftist propaganda media.
Voters – Republicans and one-time Reagan Democrats – who were starved for conservative news and opinion flocked to the social media site sending engagement rates soaring.
These conservative, pro-Trump sites were viewed as an existential threat to the existing media construct – the so-called mainstream media – that exists to convince the masses of the helplessness of their situation and to accept the decisions of our elected officials in furtherance of multinational corporate and banking greed.
Facebook’s fall from its once lofty position coincides with its decision to grossly diminish the reach of, and even to completely purge, conservative reporting and opinion from its platform.
As we watch the stock price break through previous resistance levels it’s anyone’s guess where the bottom will be.
With a P/E ratio of 20 and saddled with a declining user base, Facebook is still over-valued – by a considerable amount. P/E ratios that lofty are reserved for investors who are anticipating growth and increasing returns, not for a company in decline.
Facebook’s problems are of its own making but it does serve to illustrate what happens when ideology – especially liberal ideology – governs policy decisions.