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!

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!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photo by Jaap Arriens/NurPhoto via Getty Images

Wall Street analysts are citing concerns over Facebook's management style in evaluating the company's stock in light of the days-long Cambridge Analytica controversy.

Why it matters: Investors have shifted their concerns about Facebook from things they can't handle, like market conditions and calls to regulate data-driven tech platforms, to things they can, like their management style or structure.

"Facebook is exhibiting signs of systemic mismanagement, which is a new concern we had not contemplated until recently."
— Brian Wieser, Senior Research Analyst – Advertising, Pivotal Research Group

At the heart of the management question is whether Facebook has simply grown too big to structurally manage the scope of the issues its facing, or if there's a problem with how the current management team is approaching the crisis and other issues.

  • "It doesn't seem that as a company they are equipped to handle this crisis and so maybe that could be a sign of bigger problem at the company," Height Capital Markets analyst Stefanie Miller tells Axios.
  • Bank of America Merrill Lynch analyst Justin Post has also warned that the tech giant is being seen as an “enabler” because it didn’t alert users that their data was collected without their consent, according to business news website ValueWalk.

Signs of disagreement internally around management strategy came to light earlier in the week when news broke that Facebook's Chief Information Security Officer Alex Stamos will leave the company after reportedly clashing with colleagues on how to handle disclosures of Russian activity on Facebook.

The news comes a day after Facebook was hit with its first-ever investor lawsuit over the way its handled the issues of user privacy and data security.

  • "Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies," writes Fan Yuan, on behalf of himself and "on behalf of all others similarly-situated."

Investor confidence in social media platforms has wained since the scandal broke Friday evening, as policymakers in Europe and the U.S. come forward with increase calls for regulation.

Wieser notes that management calculations are unusual in regards to Facebook's evaluation.

  • "Recall that our negative view on Facebook’s stock has been primarily due to concerns about limits to growth for digital advertising in general and for Facebook in particular... However, what has come to light with the past week’s revelations potentially represents a different class of problem when put in context with other issues that have arisen in recent months."
  • "Investors now have to consider whether or not the company will conclude that it has grown in a manner that has proven to be untenable or whether it needs to significantly improve how it is managed."

Nearly a week into the controversy, key Facebook execs, like CEO Mark Zuckerberg, COO Sheryl Sandberg and Chief Privacy Officer Erin Egan, have yet to comment, although Axios' Mike Allen reports that they plan to do so in the near future.

Go deeper

About 20% of U.S. adults have received first vaccine dose, White House says

Joe Biden speaks during an event commemorating the 50 million COVID-19 vaccine shots. Photo: Doug Mills-Pool/Getty Images

Nearly 1 in 5 adults and nearly half of Americans 65 and older have received their first dose of the coronavirus vaccine, White House senior adviser Andy Slavitt said on Friday.

The big picture: The Biden administration has previously said it has secured enough doses to vaccinate most of the American population by the end of July.

U.S. releases report finding Saudi prince approved Khashoggi operation

Photo: Bandar Algaloud / Saudi Kingdom Council / Handout/Anadolu Agency via Getty Images

The Office of the Director of National Intelligence (ODNI) has released an unclassified report assessing that Saudi Crown Prince Mohammed bin Salman (MBS) approved the operation to "capture or kill" Washington Post journalist Jamal Khashoggi in 2018.

Why it matters: The grisly October 2018 murder of Khashoggi inside the Saudi consulate in Istanbul sparked worldwide outrage and calls for the U.S. to fundamentally reevaluate its relationship with the Gulf kingdom.

Updated 38 mins ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Health: Most COVID-19 survivors can weather risk of reinfection, study says — "Twindemic" averted as flu reports plummet amid coronavirus crisis
  2. Vaccine: Employers mull COVID vaccine requirements — New data reignites the debate over coronavirus vaccine strategyPfizer begins study on 3rd vaccine dose as booster shot against new strains.
  3. Economy: What's really going on with the labor market.
  4. Local: All adult Minnesotans will likely be eligible for COVID-19 vaccine by summer — Another wealthy Florida community receives special access to COVID-19 vaccine.
  5. Sports: Poll weighs impact of athlete vaccination.