Facebook: The Cost Of Becoming Over-Friendly

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About: Facebook, Inc. (FB)
by: Anuj Dhawan
This article is exclusive for subscribers.
Anuj Dhawan
Tech, software, internet, value
Summary

Right from its formative days, Facebook appears to have had scant regard for user privacy.

As Facebook grew, the company left no stone unturned to scrape off every monetizable data point from the user psyche.

User addiction, perceived lack of economic harm and Facebook's promises to respect privacy had long absolved the company of all blame.

However, the Cambridge Analytica scandal appears to have exposed the flaw in the company's core.

With an unfavorable public opinion, advertiser sentiment, and regulatory disposition, Facebook's newer initiatives may just exacerbate the company's cash flow weakness.

The lack of understanding of Facebook's (FB) policies with the explosion of the mobile Internet had led to the company enjoying a discount on many occasions. However, the increasing impact of technology choices