Why Facebook, Sprint, and TripAdvisor Slumped Today
Stocks started the week in the red, with the Dow Jones Industrial Average pulling back further from the record highs it set early last week. The broader market fell even more, and the technology sector found itself particularly hard hit by concerns about the sustainability of the bull market. Comments regarding the potential course of U.S. interest rates also weighed on sentiment among investors, especially because worries have already surfaced about whether the tightening that the Fed contemplates could prove too much for the economic recovery to bear. A few stocks were especially weak, and Facebook (NASDAQ: FB), Sprint (NYSE: S), and TripAdvisor (NASDAQ: TRIP) were among the worst performers on the day. Below, we'll look more closely to tell you why they did so poorly.
Shares of Facebook fell 4.5% as the social media giant found itself the subject of controversy surrounding the role that Russia has played in influencing political elections. CEO Mark Zuckerberg has attempted to walk the line between accepting some measure of responsibility for allowing Russian interests to purchase Facebook ads in an attempt to affect the outcome of the U.S. presidential election and forestalling a more aggressive response from lawmakers or regulators. These issues have been outstanding since just after the election, yet a failure to move forward has some wondering if Facebook will be able to avoid a bigger hit to its business.
Image source: Facebook.
Source: Fool.com
