Facebook Inc (NASDAQ:FB) Dropping Since Brexit

tags: FB

This year has went rather well for the stock of Facebook Inc (NASDAQ:FB), as it has climbed well over the $100 per share mark. This company stock has shown some hesitation in this month, but has still kept most of the value that it gained.

 

The main concern that FB is facing is that only 200 million of its 1 billion daily users are in the USA. Given the fact that a lot of the rest are located in Europe and the United Kingdom the Brexit vote will most likely have a significant effect on the revenues that the company is able to generate.

 

A total 24% of the company’s revenue was generated in Europe in the last year, so the recent events pose a threat to investor value, as advertising demand or currency translation issues may hurt the valuation of the company.

 

Last week ended with a 2.61% loss and we saw FB drop another 2.77% in yesterday’s trading, finishing the session with a price of $108.97. Still, the company stock is showing better potential in today’s trading and is already trading 2.60% un the charts as of the writing of this article.

 

It is yet to become more clear what the actual impact of Brexit will do to FB and many other companies, so be sure to do your due diligence and weigh out all risks before committing to any trades.