Facebook is in no danger of failing as a business any time soon, but their growth is slowing and they seem to be at an awkward transition point where their core business is no longer "cool" and isn't attracting younger users. They're also finally reaping the consequences of their growth-at-all-costs attitude (and it turns out those consequences suck for all of us).
Slow growth might as well be failure as far as Wall Street is concerned. But it turns out Facebook has this massive superweapon — their platform's ability to influence the thoughts and actions of literally billions of people — and, like the Death Star, nobody quite realized how powerful it was until we saw its full destructive force unleashed on an unsuspecting populace.
The question now for Facebook's leadership is where their priorities lie. They can choose to do the responsible thing and try to limit the destructive power of their superweapon and refocus it in ways that are less harmful and more beneficial to society (but also less profitable). Or they can prioritize the business and do everything possible to exploit their power for profit, including waging legal and PR battles to prevent government regulations that would limit that power.
I think at least some of Facebook's leadership does want to do the right thing, but they seem to have a major case of cognitive dissonance. They seem to think there's a way to have their cake and eat it too by somehow doing the right thing and continuing to grow rapidly and make lots of money. But there isn't, and until they realize that and make a real decision, they won't really be able to do either effectively.