Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!
Expand chart
Data: Yahoo Finance; Chart: Danielle Alberti/Axios

Facebook's latest string of controversies is beginning to seriously weigh on its stock performance — a clear indication of the tech giant's vulnerability to long-term business headwinds, even if its ads business continues to grow for now.

The big picture: In the past, investors have mostly shrugged at blows to Facebook's reputation, including Capitol Hill hearings and leaks, and instead have focused on ad and user growth as metrics for success.

Details: Facebook's share price is down roughly 15% since it hit an all-time high on Sept. 7, the biggest dip since its decline at the onset of the pandemic and the third-worst negative streak in its history.

  • Its share price took a major hit Monday following a whistleblower's interview with CBS' "60 Minutes" Sunday and a major outage that shut down its Facebook, Instagram and WhatsApp apps globally for hours.
  • Facebook's stock has been declining for weeks, following the release of a series of reports from the Wall Street Journal detailing the whistleblower's findings and an admission by the company on Sept. 22 that changes to Apple's privacy terms will continue to hurt its ads business.

Be smart: Facebook's business has for years withstood controversy and scrutiny, in large part thanks to the millions of small businesses that are hooked on cheap Facebook ads.

  • Even a major advertiser boycott around content moderation last year barely dented the company's revenue.

But now Facebook is facing an existential crisis: What happens when some of its rivals, free from the regulatory attention beating down on Facebook, begin to chip away at its market share and are left free to innovate faster?

  • TikTok last week said it hit 1 billion users worldwide. Snapchat posted higher user and revenue growth last quarter. Facebook's main app, meanwhile, continues to show signs of stagnant user growth.
  • Facebook's social ads business is vulnerable to Apple's privacy changes in a way that Google's and Amazon's search ads businesses are not.

Between the lines: Facebook's strategy so far has been to focus its attention on what's next. The company is building a new Metaverse product group in an effort to beef up hardware sales and increase engagement. It's also looking to launch a virtual wallet alongside a new digital payments system.

  • While Facebook has frequently pivoted its focus in the past, its new ambitions will be met with far greater regulatory scrutiny than before, and that could handicap its ability to get ahead of competitors.

What's next: Some critics argue that by focusing publicly on its new products, Facebook can distract regulators and investors from the problems with its current social media and messaging products, which have for years struggled with issues like misinformation and hate speech. But pundits' reactions to Facebook's latest drama suggest that a distraction plan may not work.

  • "This is now hitting the point where people have serious questions," CNBC anchor Jim Cramer said on-air Monday.
  • "I felt like that series was devastating," he said, referring to The Wall Street Journal reports. "I think that those documents, there was not a lot of truth expressed by the company versus what we read."

Go deeper

House Democrats target algorithms in liability shield bill

Illustration: Aïda Amer/Axios

The leader of a powerful House committee is taking aim at websites' liability shield in a new bill that would remove protections if recommended content leads to real-world harm.

The big picture: The bill is the latest attempt to tweak tech's shield after mounting frustrations from both Democrats and Republicans about Facebook, YouTube and Twitter's content moderation practices.

LinkedIn announces new app to avoid China scrutiny

Illustration: Sarah Grillo/Axios

LinkedIn is finding ways to stay in China despite increased censorship pressure from the country's government to limit social posts and news sharing.

Why it matters: LinkedIn's new toehold solution protects its main brand while operating under similar amounts of local scrutiny. 

Biden: "Being a cop today is one hell of a lot harder than it's ever been"

President Biden speaks during the 40th Annual National Peace Officers Memorial Service at the U.S Capitolon Oct. 16. Photo: Brendan Smialowski/AFP via Getty Images

President Biden speaking at the U.S. Capitol on Saturday honored members of law enforcement who died in the line of duty in 2019 and 2021 and saluted those who are currently serving.

Driving the news: "We expect everything of you, and it's beyond the capacity of anyone to meet the total expectations. Being a cop today is one hell of a lot harder than it's ever been," Biden said.