Can Facebook weather advertising boycott

Almost 500 advertisers have commenced an advertising boycott against social media giant Facebook in efforts to force the company to take a stronger stance against hate speech.

Following weeks of unrest in America in the wake of the killing of George Floyd, social media flooded with hate speech and fake news prompting Twitter to create a new factbox feature.

Facebook, however, stood firm in its resolution to not remove posts that were flagged as hate speech, citing their commitment to upholding free speech.

With major brands boycotting the platform, there are concerns that Facebook’s $70 billion in annual ad revenue could be hit. Experts are predicting a seven percent drop in share price, if the boycott extends indefinitely.

As of now, Facebook shares sustained an 8 percent drop on Friday after global consumer-products maker Unilever said it would pause advertising for the rest of the year. However, shares have already bounced back from that dip.