Connect with us

Markets

Facebook’s Volatile Year in One Giant Chart

Published

on

View a high resolution version of this graphic.
Facebook's Volatile Year Explained in One Chart

Facebook’s Volatile Year in One Giant Chart

View the high resolution version of today’s graphic by clicking here.

Facebook has found itself in the headlines a lot in 2018, but not for reasons investors are likely to be excited about.

The tech giant battled privacy scandals, policy changes, and dwindling user engagement throughout the year, and in July the company made history with an overnight drop of $119 billion in market capitalization – the single largest drop in U.S. history.

We did today’s chart in conjunction with Extraordinary Future 2018, a tech conference featuring Cambridge Analytica whistleblower Christopher Wylie as a speaker on Sep 19-20 in Vancouver, BC, to show Facebook’s volatile year in perspective.

Here is a recap of some of the more major events that prompted volatility so far in 2018:

Zuckerberg Sells Shares

Facebook CEO Mark Zuckerberg drew attention in September 2017 when he announced plans to systematically sell off up to $12 billion in stock – nearly 50% of his personal stake.

It’s all part of a plan to transfer the bulk of his stake to the Chan-Zuckerberg Initiative. Zuckerberg and his wife Priscilla Chan founded the philanthropic company at the end of 2015 with the stated focus of “personalized learning, curing disease, connecting people and building strong communities.”

Zuckerberg started unloading stock with an initial sale of 1.14 million shares in February 2018 – the biggest insider sale of shares of any public company in the preceding three months. While analysts didn’t see any red flags for the sale at the time, the volume came when the share price needed all the stability it could get.

Facebook’s Privacy Scandal

On March 16, The Guardian and The New York Times published joint exposés reporting that 50 million Facebook user profiles were harvested by Cambridge Analytica without user knowledge. Later estimates pegged that number at closer to 87 million profiles.

Facebook soon found itself the focus of an investigation from the Federal Trade Commission, and published full-page ads in British and American newspapers to apologize for a “breach of trust”. As Facebook scrambled to regain user trust, share values dropped by 17.8% over the 10 days after the scandal broke.

In April, Zuckerberg appeared before Senate to answer tough questions about Facebook’s privacy policies. The CEO’s testimony restored some faith in the stock, and it gained some traction over the next three months, but the damage was already done.

Facebook’s History-Making Stock Drop

Facebook posted disappointing Q2 results on July 24, attributing their sluggish quarter to dropping user numbers and continued privacy challenges driven by General Data Protection Regulation (GDPR) deadlines.

The report triggered an overnight stock drop of 19% – the single biggest one-day value loss ($119 billion) in U.S. stock market history.

As a result of the rout, Zuckerberg’s personal fortune dropped by nearly $16 billion, an amount that exceeds the total market cap of companies like Dropbox or Snapchat.

Where to from here?

Is this the end for Facebook? The halo may have slipped from the social media golden child, but the company may not be in danger quite yet.

The company’s namesake social network is not the only sandbox it plays in, and the company’s diversity is just the thing that might keep Facebook afloat amidst changing social media sentiment.

Facebook’s purchases of Instagram and WhatsApp are paying off, as those platforms continue to grow steadily. Meanwhile, the investment in Oculus Go could be a game-changer for VR, bringing standalone virtual reality systems to the home market. Finally, Facebook is leveraging its main social network as a place to fine tune algorithms and pave the way for new developments in artificial intelligence and machine learning.

Despite Facebook’s challenges in the realm of social media this year, its expansion into other emerging technologies might help the company secure its future.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Comments

Advertising

The World’s 100 Most Valuable Brands in 2019

Technology brands account for 20 of the world’s 100 most valuable brands in 2019, combining for a whopping 43% of total brand value.

Published

on

The World’s 100 Most Valuable Brands in 2019

Brand equity can be a challenging thing to build.

Even with access to deep pockets and an innovative product, it can take decades of grit to scrape your way into the mainstream consciousness of consumers.

On the path to becoming established as a globally significant brand, companies must fight through fierce competition, publicity scandals, changing regulations, and rapidly-evolving consumer tastes – all to take a bite from the same piece of pie.

Cream of the Crop

Today’s visualization comes to us from HowMuch.net, and it showcases the 100 most valuable brands in the world, according to Forbes.

Here are the powerful brands that sit at the very top of the list:

RankBrandBrand Value ($B)1-Yr Value ChangeIndustry
#1Apple$205.5+12%Technology
#2Google$167.7+27%Technology
#3Microsoft$125.3+20%Technology
#4Amazon$97.0+37%Technology
#5Facebook$88.9-6%Technology
#6Coca-Cola$59.2+3%Beverages
#7Samsung$53.1+11%Technology
#8Disney$52.2+10%Leisure
#9Toyota$44.6+0%Automotive
#10McDonald's$43.8+6%Restaurants

It should be noted that the list is ordered by brand value, a measure that tries to calculate each brand’s ultimate contribution in financial terms to the parent company. You can see that full methodology here.

Finally, it’s also worth mentioning that brands with only a token representation in the United States have been excluded from the rankings. This means companies like Alibaba or Vodafone are not represented in this particular visualization.

Tech Rules Again in 2019

For another straight year, technology dominates the list of the 100 most valuable brands in 2019 – this time, with six of the top seven entries.

Most of these brands saw double-digit growth in value from the previous year, including Apple (12%), Google (27%), Amazon (37%), Microsoft (20%), and Samsung (11%). The one notable exception here is Facebook, which experienced a 6% drop in value attributed to various struggles around the company’s reputation.

Here’s a look at how industries break down more generally on the list:

Industry# of BrandsBrand Value ($B)
Total100$2,231.9
Technology20$957.6
Financial Services13$198.1
Automotive11$208.9
Consumer Goods10$123.8
Retail8$133.0
Luxury6$124.1
Beverages4$49.3
Diversified4$56.8
Alcohol3$69.8
Apparel3$34.7
Business Services3$33.5
Restaurants3$73.0
Telecom3$24.3
Heavy Equipment2$36.7
Leisure2$19.8
Media2$34.8
Transportation2$41.1
Tobacco1$12.6

As you can see, technology brands make up 20% of the list in terms of the number of entries – and a whopping 43% of the list’s cumulative valuation.

In total, technologies brands combined for $957.6 billion in value. Even when including Facebook’s recent drop, this is an impressive 9.7% increase on last year’s numbers.

Will the double-digit increases for the world’s largest tech giants continue into 2020, or are brands such as Amazon and Google going to start seeing the same type of pushback that Facebook has grappled with among consumers and regulators?

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading

Cannabis

The Allure of Craft Cannabis to Investors

Craft products are taking the retail world by storm. Find out why investors should be paying close attention to craft cannabis and its potential impact.

Published

on

The Investor Appeal in Craft Cannabis

They say if you do what you love, then the money will follow. In the multi-billion dollar cannabis business, that has certainly proved true for those who have been passionate about the plant for decades — otherwise known as craft growers.

Today’s infographic from Pasha Brands dives into the huge consumer demand for craft products, and why investors should pay attention to this trend as it extends into cannabis.

The Perfect Craft Product

Chances are, you may have encountered any of the following at least once: microbrewed beer, specialty coffee, premium wine, or organic food. They’ve become so popular, that craft versions of all these are steadily carving a valuable niche in their original markets.

 U.S. Market Size, 2017Craft Market Size, 2017Share of total
Beer vs Microbrew Beer$111B$26B23%
Coffee vs Specialty Coffee$32B$10B31%
Wine vs Premium Wine$80B$44.8B56%
Food vs Organic Food$898B$49.4B5.5%

Whether it’s introducing flavors into brews, slow-roasting beans, producing wine in small lots, or using a conscious “farm to table” label — what they have in common is the careful attention that’s paid to the process from start to end.

Craft cannabis bears a strong resemblance to all of these in that way, as growing it involves extra care, compared to large-scale producers. For example, hand-trimming is more labor intensive than using machines, but results in products with superior quality.

What are some other characteristics of craft cannabis?

  • Attention to detail
    A hands-on approach allows growers to personally ensure each cannabis plant is healthy.
  • Sustainable practices
    The use of organic farming to save energy, creating a smaller environmental footprint.
  • Social responsibility
    Smaller growers typically leverage local connections, creating employment opportunities.
  • Artisanal branding
    Sophisticated and modern packaging helps appeal to different types of craft cannabis consumers.

It’s clear why consumers care about craft cannabis. But what does it offer investors?

Making the Case for Craft

Investors should be paying close attention to craft cannabis for three key reasons: a higher price point, a focus on quality, and access to the retail market.

Upscale Price Tag

On average, organic cannabis has a higher price point attached to it, compared to regular grade cannabis.

  • Industry average: $9.02/ gram
  • Organic average: $11.40/ gram

Using organic methods to grow cannabis means that the final product on shelves boast an enhanced potency and effect. Since craft cannabis is also grown organically, it’s clear that consumers are willing to spend more to secure a premium product.

Promise of Quality

It might not come as a surprise that the most famous craft cannabis regions are also where the biggest volume of legal cannabis sales come from. California and Canada accounted for nearly 38% in global market share in 2017:

  • Worldwide sales: $9.5 billion
  • California sales: $3 billion
  • Rest of U.S. sales: $5.5 billion
  • Canada sales: $0.6 billion
  • Rest of world: $0.4 billion

These two areas have a foothold in cannabis sales, and with recreational legalization unfolding in both – and 75 million people living between the two jurisdictions – it will only continue to grow.

Opening the Doors

Following nation-wide legalization in Canada and an increasing number of states in the U.S., the continent is facing a cannabis shortage. Why? As it turns out, while craft growers are abundant, they still face regulatory hurdles in order to move from the “gray” underground market into launching legal operations.

Craft cannabis could be a cornerstone for industry growth, but its growers have been in the shadows for a long time. As cannabis gains momentum, tapping into the huge network of craft growers will be key for success.

Subscribe to Visual Capitalist

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Continue Reading
Choom Company Spotlight

Subscribe

Join the 100,000+ subscribers who receive our daily email

Thank you!
Given email address is already subscribed, thank you!
Please provide a valid email address.
Please complete the CAPTCHA.
Oops. Something went wrong. Please try again later.

Popular