Facebook Had a Very Bad Week Last Week, and Things Did Not Improve Today

The social media giant's stock price has been suffering from a raft of bad headlines in the past week.

learn more about Andrew Osterland

By Andrew Osterland Originally published Mar 18, 2019

Christophe Morin | IP3 | Getty Images

Opinions expressed by Entrepreneur contributors are their own.

Between executive departures, network outages and the live broadcast of a New Zealand terrorist attack on its network, it's no wonder that Needham analyst Laura Martin downgraded Facebook to a hold this morning, citing the recent departures of eleven senior managers at the company as an ominous sign for the social media giant. The stock fell 3.32 percent, the second biggest drop on the Entrepreneur Index™ today.

The broader market posted moderate gains as economic data suggested businesses are still in growth mode. The Bureau of Labor Statistics reported that job vacancies jumped to 7.6 million in January, significantly above estimates and a sign that companies are not yet anticipating a slowdown in their business. The S&P 500 and Nasdaq Composite indexes were up 0.37 percent and 0.34 percent respectively, while the Dow index, dragged down in part by a 1.77 percent drop in Boeing shares, was up 0.25 percent. The Entrepreneur Index™ closed the day with a gain of 0.51 percent.

L Brands had the biggest gain on the Entrepreneur Index™ today, rising 3.27 percent. The company announced that its Victoria's Secret brand would resume selling previously discontinued swimwear online because of "overwhelming demand." The stock has been particularly volatile of late as investors anticipate a restructuring of the company because of poor sales at Victoria's Secret. It is up 6.9 percent this year and down 32.3 percent over the last twelve months.

Fedex corp. was up 2.48 percent today. The delivery giant, a good proxy for global economic growth, will report earnings tomorrow. There is growing concern in the analyst community that Amazon's plans to deliver more of its own packages with its growing fleet of vans and airplanes will eventually hurt Fedex and UPS. Fedex shares are down 27.6 percent in the last year.

Other notable gains on the Entrepreneur Index™ included investment bank Jefferies Financial Group (2.42 percent) and clothing-maker Ralph Lauren Corp. (2.84 percent). Chipotle Mexican Grill was also up 2.63 percent after a Piper Jaffray analyst reaffirmed an overweight rating on the stock and set a price target of $725. It currently trades at $656.

Medical device maker Boston Scientific had the biggest decline on the Entrepreneur Index™ today, falling 5.57 percent. The drop was apparently in response to positive results from the testing of non-invasive heart valve replacement procedures by competitors Edwards LifeSciences and Medtronic that were reported over the weekend. Both companies released data that suggested lower mortality and stroke rates among patients than those receiving valve replacements with Boston Scientific's Lotus Edge system.

Other major declines on the Entrepreneur Index™ included Tesla (-2.14 percent) and retailer Bed Bath & Beyond (-1.96 percent). Drug-makers Regeneron Pharmaceuticals (-1.66 percent) and Alexion Pharmaceuticals (-1.9 percent) were down sharply as well. The REIT sector was also weak today with Apartment Investment and Management Co. (-1.95 percent) and Essex Property Trust (-1.09 percent) posting the biggest declines.

The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.

Andrew Osterland

Andrew Osterland is a contributing writer for CNBC.com. He specializes in capital markets, personal finance and taxes.

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Branding

3 Steps to Building a Brand That Resonates in a Crowded Industry

Here are three key steps to building a brand that stands out.

Business News

A 6-Year-Old Ordered Almost $1,000 Worth Of Grubhub — And Tipped 25% on Each Order

Mason Stonehouse of Chesterfield, Michigan, grabbed his dad's phone and treated himself to chicken sandwiches, ice cream, and more.

Business News

Massive Fire At Top Egg Farm Leaves Estimated 100,000 Hens Dead. What Does This Mean For Egg Prices?

Hillandale Farms in Bozrah, Connecticut went up in flames on Saturday in an incident that is still under investigation.

Money & Finance

Americans Are Underprepared for Retirement. Here's How Small Businesses Can Help Close the Savings Gap.

Half of the American workforce doesn't have access to an employer-sponsored retirement program, yet we are 15 times more likely to save for retirement if we can do so at work — and small businesses can help. Here's how.