Facebook's Instagram Surprise Prompts More Doubts, Wall Street Says
Instagram office in New York.
Photographer: Jeenah Moon/BloombergThis article is for subscribers only.
Facebook Inc. investors woke up to another surprise this morning: Instagram co-founders Kevin Systrom and Mike Krieger are leaving the social-media giant amid disagreements with CEO Mark Zuckerberg, raising concerns over the future of the platform.
Shares fell as much as 2.6 percent at the open and are hovering around the lowest level since April, when the stock was rocked by a data breach scandal. Meanwhile, investors in peer Snap Inc. are taking advantage of Facebook’s woes, sending shares up as much as 5.3 percent.