Why Facebook shares bounced back on Tuesday

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

two Facebook "thumbs up" like symbols appear side by side with one pointing downwards in a thumbs down.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

What happened

After suffering a bad case of the Mondays, shares in Facebook (NASDAQ: FB) stock bounced back in Tuesday trading, regaining 2.3% of the 4.9% that it lost. You may want to thank Piper Sandler for that.

So what

As you’ll recall, Facebook got hit by a double-whammy on Monday. First, it suffered a public relations blow when the whistleblower behind The Wall Street Journal‘s “The Facebook Files” reporting stepped out of the shadows and revealed herself to be a one-time member of Facebook’s own Civic Integrity Team.

This is the work team responsible for helping to stop the “spread [of] political falsehoods, [the stoking of] violence and [the abuse of Facebook] by malicious governments”.

Adding injury to insult, the social network suffered its worst services outage ever on Monday when unspecified “networking issues” caused Facebook and other apps it owns, including WhatsApp and Instagram, to go dark for six hours straight.

Now what

The outage is over now. And in what feels like a rare bit of good news, Piper Sandler just released a report (according to TheFly.com) confirming that for all its troubles, Facebook’s Instagram remains the “most used social app” among US teens, with 81% reporting using it.

Don’t get too excited though. While everyone still kinda uses Instagram, Piper noted that after surveying 10,000 American teens, its competitor Snap (NYSE: SNAP) is actually teens’ favorite social app. Asked to rank their favorites, 35% of respondents picked Snapchat over Instagram.

Worse news for Facebook, Snapchat scored higher in this survey than in the one Piper ran six months ago. As negative headlines continue to swirl around Facebook and Instagram, we’ll be even more interested in seeing how these numbers look six months from now. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Why Facebook shares bounced back on Tuesday appeared first on The Motley Fool Australia.

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More reading

Rich Smith has no position in any of the stocks mentioned. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/3iARQ0b

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