Last Updated on August 3, 2023 by Steven W. Giovinco
Facebook’s massive loss just hurt your online reputation. How? In some unexpected ways you probably never thought of.
Because of flat or very low projected user growth, the stock lost a record 120 billion dollars, or 19%, triggering a loss of confidence in the tech company, which has been much maligned for data leaks and election interference.
See: How Facebook and Cambridge Analytica Could Impact Your Online Reputation
But let’s take a look at how Facebook is used in online reputation management. Usually, when searching for someone, Facebook shows up prominently. Whether a standard profile or business page, even if not very active, it often appears very visibly on the first page of Google.
This is very important for several reasons.
Facebook’s Important Role in Online Reputation Management
First, it gives heightened visibility. As part of other social media or blogging platforms, a Facebook presence lends credibility to an online existence. It is so ubiquitous that without one, there might doubt that the business is actually real or is thriving.
Second, it suppresses negative links. If trying to repair a damaged online reputation, a Facebook presence provides an important position on the first page of search results. Most likely, it is key in suppressing bad links and is an excellent tool in the repair process.
Third, it acts as a good reputation defense. If a competitor, ex-partner, disgruntled client, or anyone writes a negative comment or blog post, having a Facebook profile helps buffer against unexpected problems.
Fourth, of course, Facebook is a way to connect to prospective and existing clients by sharing posts, comments, links, and images. This generates leads and more business.
What the Loss of Facebook’s Value Means to Your Web Presence
So, back to the massive 100 billion dollar decline in Facebook’s valuation.
Here’s what is likely to happen as a result.
Much of the sharp drop was due to flat user growth. With fewer users comes lower advertising rates. With lowers rates, fewer businesses use FB. This leads to even fewer users. With less activity a result, Google might not value Facebook as highly and cease to rank it on or near the first page of search results.
And with lower search rankings, the more it impacts your reputation because you become less visible, you are more at risk for damaging links to reappear, you have less of a defense against potential problems, and naturally, there are potentially fewer clients.
Bottom Line
So, while there might not appear any connection between Facebook’s recent stock decline and your online reputation, there are actually several unexpected ways it could cause problems.
1 thought on “Facebook Just Lost 120 Billion Dollars. What Does This Mean for Your Online Reputation? You Might be Surprised…”
Some good points here–wouldn’t really expect this to have an impact on reputations but I think I does.