December 20, 2018
Facebook shares plummeted more than 7 percent today as the social media giant continued to feel the heat from a string of bad news.
A bombshell report from the New York Times revealed that Facebook allowed over 150 companies, including Netflix, Spotify and Bing, to access unprecedented amounts of user data, such as private messages.
The incident marks the latest of several privacy scandals for Facebook, which has been rocked by revelations that it repeatedly mishandled users’ private data.
Separately, Washington DC’s attorney general office announced it brought a lawsuit against Facebook, alleging the firm misled users about the security of their data and failed to adequately monitor third-party apps.
By late Wednesday, Facebook’s stock was 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 $28 billion off Facebook’s value, based on the company’s market cap at the end of Wednesday trading.
Facebook’s market capitalization now stands at $384.1 billion, down sharply from its value of $412.8 billion, which was held at the close of Tuesday’s trading.
Wednesday’s decline marks Facebook’s second-worst single-day decline in 2018, trailing a 19 percent drop on July 26, when the firm published a disappointing post-Cambridge Analytica earnings report.
This article was posted: Thursday, December 20, 2018 at 9:02 am