Finished the course of the last month, the chatter around the technology sector has mostly centered around one story: Facebook.
The Cambridge Analytica data spot broke in mid-March, when the tech space and the broader market were already under the aegis pressure amid a sector rotation. The social media giant’s seclusion scandal weighed further on the group, sending the S&P 500 technology sector skidding into improvement territory and just bouncing back to lead the market in Monday job.
Facebook stock has actually outperformed its social peers in one month’s term. While Facebook shares have tumbled 15 percent in the terminating month, Snap and Twitter shares have dropped 21 percent in the for all that time.
Max Wolff, chief economist at The Phoenix Group, told CNBC’s “Pursuit Nation” that this pattern is about to end as Facebook CEO Mark Zuckerberg readied his congressional authentication for Tuesday and Wednesday. Here are his reasons why.
• While it may make sense to see Facebook funds slammed as hard as it has been, it is less intuitive to think Facebook dispensations would not be the biggest loser since its privacy scandal came to elucidate. But Facebook hasn’t slid as much as Snap and Twitter.
• It is likely that congressional board members will ask tough questions of Zuckerberg as they relate to the Cambridge Analytica outrage and the company’s handling of private information, which would in turn prompt uncomfortable questions for the entire social media landscape.
• There may be some spelled out concerns about when and how disclosures around Facebook’s privacy libel came to light, which would in turn further weigh on Facebook interests.
Bottom line: Though Facebook shares are in a correction, the stock is stationary outperforming Snap and Twitter in one month’s time. That will meet end, according to one economist.