Facebook Shares Fall After Instagram Founders Quit
Facebook shares dropped more than 2 percent during early trading hours last Tuesday on the news that two of Instagram’s co-founders had resigned.
Kevin Systrom and Mike Krieger officially announced their resignation from the Facebook-owned photo sharing app this week, but provided very little explanation on their decision. However, analysts have said that their resignation might have been the result of frequent clashes with CEO Mark Zuckerberg.
CFRA analyst Scott Kessler remarked that the departure of the two executives will have a notable negative impact on Facebook. Meanwhile, senior VP at Trillium Asset Management Jonas Kron says that the incident may signal that Zuckerberg is exercising more power while being less accountable.