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While Facebook (FB) stock is experiencing not the best times, the company takes contingent plans for the future by adding two female board members.
Facebook Inc (NASDAQ: FB) stock fell 6.40% on Monday drastically ending the hopes of recovering any time soon. The stock traded below $170 for the first time since the calendar flipped, and retested September 2019 strong support level.
However, it did not respect the level as it has continued to show signs of falling further in the near future. The bears were showing their tenacity over the weaker bulls.
In the premarket, FB stock has started to gain. Now it is 4.66% up and its price is $177.
To counter the poor performance, the company announced that it has added two female board members with a lot of experience. The two include Nancy Killefer and Tracey Travis. Travis is the chief finance officer at Estee Lauder and also worked as a board member at Accenture.
On the other hand, Killefer served as the director at McKinsey & Company for a very long time. She also has served in different positions at the U.S. government in different capacities. The addition of the two female board members brings the total female to four while men dominate with six members.
Facebook CEO Mark Zuckerberg stated:
“We have a lot we need to get done in the coming years and I think their experience is going to be very valuable.”
This is being considered as a strategic move to counter the falling stock market, and the declining revenue as a result of low ad sales.
What Happened to Facebook Stock?
There are two major factors in play that contributed to the drastic fall of the Facebook stock market on Monday. One, during the early trading hour, the oil price tumbled bring a lot more stock market together with it. As Saudi Arabia and Russia continue their supremacy war on who runs the oil business, the stock market continued bleeding out the whole day.
The huge blame is being put on the coronavirus outbreak that has spread a lot of fear among most investors, who in turn are running away from volatile markets. In addition, there are fewer people moving towards its advertising program, which is the primary revenue generator.
The company has seen its employees opt to work remotely following a directive by the CEO to avoid the workplace due to the ongoing coronavirus outbreak. It is reported that the company has given the World Health Organization a platform on its advertising program in order to keep its business afloat.
With the company facing hard times as the election period approaches, it will have to restructure its ad program to fit accordingly to avoid friction with the policymakers.