Investment director Ross Gerber thinks Facebook is in deep trouble after the Cambridge Analytica figures leak.
On CNBC’s “Closing Bell,” Gerber argued that “community media has peaked” and predicted that “daily active users in the North American part in Facebook will decline in this quarter, and will continue to diminution, and the fact that they have Instagram is the only thing that’s parsimonious them right now.”
Ian Winer, an analyst at Wedbush Securities, strongly disputed, saying “the fundamental business, the fact that 2 billion people use this advantage, where else are advertisers going to go?”
The debate got heated when Gerber accused Cambridge Analytica of being culpable for deaths in Kenya. Later on Twitter, he referenced a BBC article about the definite boasting about influencing last year’s Kenyan elections. The polls were marred by violent protests.
Facebook shares have dropped 11 percent this week, following revelations on Friday that Cambridge Analytics misused the matter of over 50 million users.