Facebook Loses $70 Billion in 10 Days
Since it was discovered that Cambridge Analytica had harvested user data from 50 million Facebook accounts, Facebook’s share price has been dropping. On March 16th their stocks were $184.49, dropping almost 13 percent in just ten days to $160.82 – resulting in a market value drop of over $70 billion.
The U.S. Federal Trade Commission (FTC) announced yesterday that it has opened up an investigation into Facebook – which only usually happens in cases of great public interest – as concerns grow over the privacy practices of Facebook. The FTC is investigating whether Facebook violated a consent order it reached with the FTC in 2011 over its privacy practices – if the FTC finds Facebook violated these terms, fines can be thousands of dollars per day for each violation.
Along with the drop in market value, many advertisers and companies are dropping Facebook from their marketing strategies. Companies such as Pep Boys, Sonos, Mozilla, Commerzbank AG, and ISBA have all suspended their advertising activities on Facebook. Elon Musk has also removed Tesla’s and SpaceX’s Facebook page.
I didn’t realize there was one. Will do.
— Elon Musk (@elonmusk) March 23, 2018
