This is true of Facebook and many other tech stocks, but that is because these companies have never paid dividends. Investors have put up with that because the expectation of higher future profits (and thus higher cash piles for dividends or stock buybacks). A shrinking company that has never paid a dividend is much less attractive from this point of view.

That's not true, public companies can survive on profits and their investors then enjoy dividends. The market just figured out that growth is more lucrative than dividends for specific people, and there is less incentive to make sustainable companies.