In One Chart: Facebook stock can’t keep up with Twitter, and the Instagram news isn’t helping

In One Chart: Facebook stock can’t keep up with Twitter, and the Instagram news isn’t helping

Since Facebook first went public in 2012, the stock has rallied more than 300% to reign supreme as the hottest stock in the social-media landscape. At the same time, Twitter has shed a third of its value since its initial trading day while Snap, the youngest of the trio, has had an even rougher showing.

But there’s clearly a change afoot in 2018, as you can see by this chart.

So far this year, Facebook FB, -0.10% shares, sideswiped by privacy missteps and disinformation campaigns, are firmly in the red, while Twitter TWTR, +2.10%  has jumped by more than 21%. For Snap SNAP, +1.74% well, it’s still rough out there.

Now there’s trouble brewing at Instagram, which has been hailed on Wall Street as a critical growth engine for Facebook and a much-needed bridge to a younger generation that’s increasingly shunning their parents’ platform of choice.

Kevin Systrom, Insta co-founder and chief executive, announced that he and fellow co-founder Mike Krieger are leaving after eight years.

As proof of how important Insta has become for Facebook, look at Wall Street’s reaction: Facebook’s stock traded lower while the Dow Jones Industrial Average DJIA, -0.19% S&P 500 SPX, -0.09%  and Nasdaq Composite COMP, +0.19%  all managed to log early gains.

“We look for additional color in coming days and weeks,” JPMorgan JPM, -0.15%  analyst Doug Anmuth told clients. “In the near-term, we expect [Facebook] shares to come under meaningful pressure from the departures.”

Anmuth projects Instagram will more than double its revenue from a year ago to $7.5 billion in 2018, which would represent about 14% of Facebook’s ad revenue.

If the preferences of MarketWatch readers are any indication, Facebook has some work to do. Yes, it’s a Twitter poll, so there may be some self-selection bias at work here, but check out how heavily this poll is leaning in one direction:

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