Investment guru Jim Cramer predicts that Facebook's stock would rise if Chief Operating Officer Sheryl Sandberg resigned or was ousted.
The social network "is obviously" in disarray, Cramer told CNBC after a Wall Street Journal report said that CEO Mark Zuckerberg blames Sandberg for this year's problems, and Sandberg has wondered whether her job was in jeopardy.
Asked on "Squawk on the Street" whether Sandberg leaving would be good or bad for Facebook, Cramer responded by saying the "stock goes up."
Cramer said Facebook "is obviously" in disarray. "Does anyone say it's humming?" the "Mad Money" host asked. "They can't get a hold of the narrative. It's bad."
Facebook shares (FB) were down $6.34, or 4.5 percent, at $133.19 near midday, hitting its lowest level since February 2017, as the social media company came under fire after a damaging report about its top management in The New York Times.
Facebook is poised to close its third straight month in the red, which would mark its longest monthly losing streak on record CNBC reported. Furthermore, Facebook is on track for its longest quarterly losing streak since 2013, and its first full year of losses since going public. According to some experts, the stock isn't done falling, CNBC reported.
Facebook stock has hit a hig in the past year of $218.62 and a low of $137.77.
Zuckerberg has had a difficult year in many aspects, as his fortune has tumbled $17.4 billion so far this year as Facebook Inc. faces fresh criticism over its treatment of critics and continues to grapple with the fallout from its response to Russian election meddling, Bloomberg reported.
Zuckerberg’s fortune, now at $55.3 billion, has tumbled more than $31 billion from its peak on July 25. Oracle Corp.’s Larry Ellison, is close behind at No. 7 with $54.7 billion.
Zuckerberg faced renewed pressure Friday, with a group of Democratic senators demanding that he respond to news reports that the company used contractors to retaliate against critics of its privacy practices and efforts to thwart Russian propaganda on its network.
To be sure, U.S. stocks fell on Monday, as a slide in Apple’s shares on concerns about iPhone demand hit its suppliers and the technology sector, with mixed signals over the state of play between the United States and China on trade dispute adding to the weakness, Reuters reported.
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