Facebook has worst day of year on downgrade, investigations and exits

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Sheryl Sandberg, chief operating officer of Facebook Inc., left, listens during a Senate Intelligence Committee hearing in Washington, D.C., U.S., on Wednesday, Sept. 5, 2018.

Andrew Harrer | Bloomberg | Getty Images

Sheryl Sandberg, chief operating officer of Facebook Inc., left, listens during a Senate Intelligence Committee hearing in Washington, D.C., U.S., on Wednesday, Sept. 5, 2018.

Facebook shares had their worst day of the year on Monday, falling nearly 4 percent and extending last week’s losses.

The drop came after the company lost its chief product officer, Chris Cox, last week. Analysts at Needham downgraded the stock on Monday over growing concern that more top executives could follow the leads of Cox and Chris Daniels, the head of WhatsApp, who also resigned.

Cox, one of the earliest Facebook employees and someone insiders called the “heart and soul of the company,” left as CEO Mark Zuckerberg decided to shift the company’s focus towards private messaging instead of open posts on the News Feed.

The stock dropped 2.5 percent on Friday and is down more than 13 percent over the past year.

Also last week, Facebook faced criticism for the spread of videos showing the shooting at a mosque in New Zealand. The shooting was initially streamed through Facebook’s live feature, and copies of the video spread throughout the social network from other users. Facebook said Saturday that videos of the shooting were uploaded 1.5 million times, but most were removed before they could spread.

There are also regulatory concerns, with some state attorneys general considering taking action against the privacy practices of big tech companies like Facebook and Google, the Washington Post first reported last week.

“You can’t allow this power to accumulate in the hands of the few people, at some point, there’s going to have to be a reckoning for it,” Mississippi Attorney General Jim Hood said on CNBC’s “The Exchange” last Friday.

Watch: Kara Swisher on Facebook’s ‘biblically bad week’



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