The stock movements highlight new uncertainty about how much the Facebook ad sales machine could boycott. Much of Facebook's advertising revenue comes from small and medium-sized businesses, which can isolate it from an excessive revenue deficit from the boycott. But some brands such as Starbucks are high on the list of those who spend the most on Facebook advertising, according to estimates by Pathmatics, a market intelligence firm.
"Facebook needs to address this issue quickly and effectively to prevent ad outs from spiraling out of control," said Bradley Gastwirth, chief technology strategist at Wedbush Securities.
A civil rights coalition that includes the Anti-Defamation League (ADL) and NAACP launched the #StopHateforProfit campaign earlier this month, urging big corporations to stop advertising on Facebook. for the month of July, due to "the platform's repeated failure to meaningfully address the large proliferation of hate on its platforms."
"We have no incentive to tolerate hate speech," Clegg told CNN's Brian Stelter. "We don't like it, our users don't like it, advertisers understandably don't like it … We benefit from positive human connection, not hate."
Nicole Perrin, principal analyst at research firm eMarketer, said it will be difficult to "analyze" the effects of the boycott from the impact of the pandemic on Facebook's results. Some brands, he said, had already paused advertising spending due to the pandemic. Meanwhile, other advertisers stepped in to fill the gap and take advantage of the cheaper prices.
CNN's Brian Fung contributed to this report.