Baxia Markets
September 23, 2021

Facebook stock drops after Ad restrictions warnings from Apple

fundamental analysis top header -01

Facebook Inc. fell as much as 4.3% to the lowest point since July after warning Apple Inc.’s new data collection restrictions will hurt its third-quarter results.

The company said in a blog post that recent changes made by Apple to limit targeted advertising would have a more significant impact in the third quarter compared to the second quarter.

The stock’s tumble reflects investor’s concern that Facebook already sees declines in its digital advertising business after Apple implemented a software update to limit targeted advertising on iPhones. Apple’s new rules require app users to explicitly say they are willing to follow their activity across the internet. Large brands and small businesses often rely on user activity to reach specific groups of prospective customers.


Facebook Sept 22nd 2021

Facebook Chief Financial Officer Dave Wehner previously warned that Apple’s changes would have a more significant impact in the third quarter than in the second. This week’s comments stirred more consternation.

Apple has said the changes are designed with people’s privacy in mind. Meanwhile, Facebook launched a public relations campaign, arguing the new app rules will hurt small businesses that rely on targeted advertising and don’t have the money to spend on broad marketing campaigns. Small businesses make up the bulk of Facebook’s ad sales.


We love to hear new ideas from traders and want to know what you think! 


If you like this topic and want to suggest future topics that you find helpful, let us know by clicking the ‘submit your feedback’ button below.


Open Live Account  


Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. 


Nothing contained in this website should be construed as investment advice. Any reference to an investment's past or potential performance is not, and should not be construed as, a recommendation or as a guarantee of any specific outcome or profit. 


Subscribe by Email