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Why Facebook Stock Slipped Today


For the second day in a row, shares of Facebook (NASDAQ: FB) stock are down again. After fighting a rising tide to close trading down 5% on Monday, Facebook stock took another dive on Tuesday, first falling more than 5%, then clawing its way back to about a 2.9% loss as of 2:30 p.m. EST.

There's no apparent reason for today's decline -- no analyst downgrades, no price target cuts on Wall Street, and no bad earnings (or other) news from Facebook itself. Rather, as Reuters reports today, what we seem to be seeing in the past two days of unexplained selling is "investors continu[ing] to pull money out of some Big Tech companies that have benefited most from the pandemic."  

Facebook certainly seems to fit that definition. In the early days of COVID-19, Facebook struggled with worries that while homebound consumers were spending plenty of time online, producers were reluctant to pay for advertising on social networks such as Facebook because no one was shopping.

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Source Fool.com

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