China Pulls Approval For New Facebook Venture
China Pulls Approval For New Facebook Venture By Alex Kimani – Safe Haven
It’s going to take some time for investors to come to terms with the latest Facebook Inc. (NASDAQ:FB) shocker and the fact that the company is no longer invincible. When the Cambridge Analytica scandal hit and still users failed to abandon the social media giant in droves, most thought the drama was over.
It wasn’t. It just took time to set it, and the impact didn’t play out as obviously as everyone expected.
It might take a while for the stock to recover from its horrific 20-percent, single-day plunge–the worst in the company’s history.
Facebook has little choice than to adapt to a hostile world where growth will be harder to come by. Specifically, the bad rap it has been receiving regarding abuse of user data privileges seems to have finally started taking a toll on user growth, with its monthly active users in Europe falling during the last quarter for the first time.
At this point, nobody’s sure whether that was a mere blip or is set to become a long-term trend with other regions following suit. That can severely limit the company’s future growth runways and leave FB stock in the dog house.
Little wonder, then, that the social media giant has lately doubled down on efforts to capture one market that has been missing from its glittering résumé—China.
Facebook’s Latest China Entry DOA
For a decade, China has repeatedly blocked FB’s best efforts to crack its massive $750-billion online market. In 2017, it tested the murky Chinese waters once again with a photo-sharing app called Colorful Balloons. The stealth app tried its best to hide its affiliations with Facebook, though its uncanny similarity with Facebook’s Moment app finally gave it away.