Starbucks, Diageo Among the Latest to Halt Facebook Ads Spending

Social media platforms have been dealing with boycotts for hate speech even as Trump argues they silence conservative voices.

Anthony Russo
    Jun 29, 2020 11:05 AM  PT
Starbucks, Diageo Among the Latest to Halt Facebook Ads Spending
author: Anthony Russo   

Beverage makers Starbucks Corp. (NYSE: SBUX) and Diageo plc (NYSE: DEO) were among the latest to halt advertising on Facebook Inc. (Nasdaq: FB) as the social media platform appeared to have failed in combating hate speech.

The two companies joined more than 150 firms, including PepsiCo Inc. (Nasdaq: PEP) and Verizon Communications Inc. (NYSE: VZ) that are boycotting Facebook.

In a statement, Diageo said, "From 1 July we will pause all paid advertising globally on major social media platforms." 

The company added, "We will continue to discuss with media partners how they will deal with unacceptable content."

As a result, the social network giant continued to slide in trading, inching 1% lower from Friday's close to $212.87 per share as of midday Monday. Shares of Facebook are now down nearly 10% from Thursday's close.

Another social media giant, Twitter Inc. (NYSE: TWTR), has also been dealing with similar criticism lately. Intraday, Twitter's stock rose 1% to $29.34 per share from Friday's close; but was still down 6% from Thursday.

On Sunday, the buffoon-in-chief Donald Trump retweeted and commented on a video showing a supporter who says "white power"—the post was deleted before noon.

"Thank you to the great people of The Villages. The Radical Left Do Nothing Democrats will Fall in the Fall. Corrupt Joe [Biden] is shot. See you soon!!!," Trump tweeted.

Last month, Trump signed an executive order to regulate protection on social media. Trump has accused social platforms of silencing conservative voices.