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Facebook stock plummets 7% ,wipes $28 billion off value

Facebook-stock-plummets-7.-wipes-28-billion-off-value

This was the social media giant’s worst day since July after its latest report on data access as it continued to feel the heat from a string of bad news

It was revealed in a report from the New York Times that Facebook allowed over 150 companies, including Netflix, Spotify and Bing, to access an unprecedented amounts of user data, such as private messages.

This incident is the latest in several privacy scandals for the social media giant, which has been rocked by revelations that it repeatedly mishandled users’ private data. Separately, Washington DC’s attorney general office announced that it brought a lawsuit against Facebook, alleging that it misled users about the security of their data, and the monitoring of their third-party apps.

Facebook’s stock is on track to experience its worst day since July, when it roiled from a negative post-Cambridge Analytica earnings report. The stock’s one-day decline managed to wipe out $28bn off Facebook’s value, based on the company’s market cap.

Facebook’s market capitalization now stands at $384.1bn, down sharply from its value of $412.8bn, which was held at the close of Tuesday’s trading.

This decline is the company’s second-worst single-day decline in 2018, trailing a 19% drop on July 26, when the firm published a disappointing post- Cambridge Analytica earnings report. 

The nation’s capital launched a lawsuit against Facebook over its Cambridge Analytica scandal. 

In March, Facebook revealed that some 87mn users’ data shared with Trump-affiliated research firm Cambridge Analytica without their knowledge. 

‘Facebook failed to protect the privacy of its users and deceived them about who had access to their data and how it was used,’ Attorney General Karl Racine said in a press release, according to NBC.

Facebook’s 2011 agreement with the Federal Trade Commission had required Facebook to make clearer how it shared data with third parties. It had also barred Facebook from sharing friends’ data without their consent.

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