Facebook to lose $23.8 billion market value after data breach

50 million Facebook accounts could have been breached according to new reports.

The move forced a drop of 6.8 percent on Facebook shares and a loss of $23.8 billion in market value.

Reports came out on Saturday that the breached accounts ended up in the hands of data analytics firm Cambridge Analytica, the company used the accounts to change profile information to favor Donald Trump so the ads algorithm showed more Trump ads to users.

Facebook is set to lose more than $23.8 billion in value as a Wall Street analyst says the reports raised ‘systemic problems’ with Facebook’s business model and a number said it could spur far deeper regulatory scrutiny of the platform.

Facebook has one of the biggest advertising platform on the web, every major company in the world uses Facebook as an advertising platform and has been for at least the last 10 years.

Wall street advises investors to use this opportunity to buy more stocks as the breach won’t hurt the brand that much.

 

Recommended For You

Emmy Skylar

About the Author: Emmy Skylar

Emmy Skylar started working for Debate Report in 2017. Emmy grew up in a small town in northern Manitoba. But moved to Ontario for university. Before joining Debate Report, Emmy briefly worked as a freelance journalist for CBC News.  She covers politics and the economy.

Leave a Reply

Your email address will not be published. Required fields are marked *