(CNN) Facebook is taking steps to address criticism that its platform has been hijacked by bad actors, but investors are bailing.
Despite hours of testimony, a blitz of executive interviews and numerous tweaks to its privacy settings, Facebook has yet to put the Cambridge Analytica issue behind it.
And now, Facebook faces the prospect of additional regulatory scrutiny after disclosing a new security breach affecting nearly 50 million users.
The longer the privacy backlash continues, not to mention ongoing concerns about election meddling, the more potential for damage to Facebook's core business.
Facebook is in need of a "positive cataylst" to kickstart its recovery, according to Sandler.
The surprise departure of Instagram's two founders could potentially pave the way for Facebook to exert more control over the platform's direction.
"New leadership there could lead to more monetization," Scott Kessler, an analyst with CFRA, wrote in a note this week. »