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The Fall of the Facebook Brand?

October 21, 2019 By Jeremy Jones, CFA

By Gustavo Frazao @ Shutterstock.com

Facebook and its founder Mark Zuckerberg have been enduring heightened scrutiny ever since the Cambridge Analytica scandal exposed the social media network’s failures to protect user privacy. Since then, a cascade of bad news has hit the company, and according to a new ranking by Interbrand, that may be affecting its brand value. The Wall Street Journal’s Nat Ives writes:

Facebook fell out of the top 10 in Interbrand’s annual Best Global Brands report, dropping to 14th place from ninth as the estimated value of its brand declined 12% to $39.9 billion.

Interbrand, part of Omnicom Group Inc., says its report synthesizes elements including the financial performance of branded products or services, the role that brands play in purchasing decisions and brands’ ability to create loyalty.

By Interbrand’s estimation, the Facebook name grew steadily in value each year until 2017, when it earned eighth place.

But Facebook has now endured an onslaught of bad publicity, including the 2018 Cambridge Analytica scandal, which revealed that users’ data had flowed beyond Facebook more freely than many people expected.

Read more here.

Zuckerberg changes tune on free speech, Facebook brand value declines

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Jeremy Jones, CFA
Jeremy Jones, CFA, CFP® is the Director of Research at Young Research & Publishing Inc., and the Chief Investment Officer at Richard C. Young & Co., Ltd. Richard C. Young & Co., Ltd. was ranked #10 in CNBC's 2019 Financial Advisor Top 100. Jeremy is also a contributing editor of youngresearch.com.
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