I have taken a small trading short in Facebook (FB) -- here's why
- I believe it is highly likely that the company's advertising problems (stemming from the revelation that Russia has posted fake advertisements/information) are being understated by Facebook.
- The Mueller investigation may uncover more issues with regard to advertising on Facebook.
- Facebook has previously said that they have deleted millions of fake accounts around the world. Facebook has even mentioned that some days they delete as many as 1 million fake accounts. Therefore, it stands to reason that Facebook may have uncovered only a small amount of false advertisements made by Russians and others.
- Though the amount of money being spent for advertising on Facebook is robust, at the very least an additional layer of expenses will be created.