British investment management company Rathbones has removed its entire holding in Facebook from its Global Opportunities fund.
The London-based firm said the social media giant has undermined consumer trust.
The recent controversy surrounding Facebook’s data breaches, and especially in relation to the massive leak of consumer data to British consultancy firm Cambridge Analityca, led Rathbones to remove its holding in Facebook from its top 10 portfolio, according to reports.
James Thomson, a fund manager with Rathbones, said: “Having entered the stock almost five years ago, in 2013, we feel the bombardment of advertising and the exploitation of personal data are polluting the appeal of Facebook. In its pursuit of profit, Facebook is losing its consumer trust.
“Evidence of Facebook fatigue will be unmasked if there is a marked deterioration in its time-spent and engagement metrics. Perhaps advertisers might start to question the integrity of its advertising reporting data. These are both triggers for a crisis of confidence that could cause the stock to crater.”