Facebook Stock Plunges in Third Worst Trading Week Ever
Facebook experiences a massive 13 percent stock drop as the Cambridge Analytica data scandal triggers government probes and a growing #deletefacebook movement.
Facebook stock suffers its third worst trading week in history as shares fall more than 13 percent following the Cambridge Analytica data scandal. The social media giant loses roughly $75 billion in market capitalization over the course of the week, closing Friday just below $160. This steep decline pushes the stock more than 18 percent below its 52-week high.
The massive sell-off stems from reports that Cambridge Analytica improperly accesses the personal data of over 50 million Facebook users. Lawmakers on both sides of the Atlantic demand answers from the company, and the Federal Trade Commission opens an official investigation into the data leak. A growing #deletefacebook movement further fuels negative sentiment among users and investors alike.
Facebook executives attempt to manage the fallout, with CEO Mark Zuckerberg breaking his silence to apologize and COO Sheryl Sandberg stating the company focuses on user privacy rather than stock prices. Major advertisers indicate they plan to stay on the platform, but analysts downgrade the stock due to an uncertain future. Despite these reassurances, the week ends as Facebook's worst trading period since July 2012.