Tuesday’s Headlines: Facebook’s Dark Day

Tuesday’s Headlines: Facebook’s Dark Day

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

IMAX (IMAX) +4.5%

Calavo Growers (CVGW) +2.1%

Evolent Health (EVH) +1.8%

Duluth Trading (DLTH) +1.8%

Axos Financial (AX) +1.8%

Moving Down ⬇️

Stitch Fix (SFIX) -7.2%

Redfin (RDFN) -7.1%

Smartsheet (SMAR) -7.1%

Yext (YEXT) -6.5%

PagerDuty (PD) -6.4%


1. To say Facebook (FB ) has hit hard times would be an understatement; not only did it suffer a global outage yesterday but it is also dealing with a major whistleblower scandal. The double whammy sent shares down almost 5% yesterday. Suffering its worst outage since 2008, its namesake Facebook site, along with Instagram and WhatsApp, were all offline until late Monday night causing havoc for its 3 billion users. Shares were also hurt by a '60 Minutes' interview where a whistleblower, former Facebook employee Frances Haugen, accused the firm of betraying democracy. Haugen made copies of internal files before departing the firm and accused it of prioritizing its “own profits over public safety — putting people’s lives at risk.” Get the full story here

2. Facebook was not the only one to suffer though as Big Tech stocks bore the brunt of the market selloff on Monday. The recent dip has highlighted how an extended downturn in technology stocks weighs heavily on broader indexes. Following Monday’s sharp drop, the S&P 500 (VOO) and tech-heavy Nasdaq (QQQ) were both down 1.23% and 2.10% respectively. The tumbles came as investors became increasingly concerned about the Federal Reserve's easing money policies, a jump in Treasury yields, and as lawmakers debate the U.S. debt ceiling. Despite the volatility, many shareholders are reluctant to cut their exposure to tech stocks as they are still expected to deliver solid earnings growth even in a tough economic climate. See more here.

3. Not long after posting record-breaking sales for the third quarter, Tesla (TSLA) has to pay out $137 million to an ex-employee after he endured racist abuse working for the company. According to the former employee’s attorneys, the case was only able to go forward because he had not signed Tesla’s mandatory arbitration agreements, which the EV maker reportedly uses to force employees to resolve disputes privately rather than in a public trial. Tesla is also facing a pending class action suit for similar accusations, with many claiming that the company’s workplace is rife with racism. Activists are urging Tesla to address its arbitration policy as some are concerned it can hide and enable workplace harassment and discrimination. Read the full story here


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