Facebook's stock tumbles again. Data scandal wipes away $50 billion

Facebook's stock is sliding for the second day in a row.Shares of Facebook fell another 5% Tuesday on the heel...

Posted: Mar 20, 2018 4:33 PM
Updated: Mar 20, 2018 4:33 PM

Facebook's stock is sliding for the second day in a row.

Shares of Facebook fell another 5% Tuesday on the heels of the company's worst day in four years. More than $50 billion has been wiped off Facebook's market value this week.

Investors punished Facebook after Cambridge Analytica, which had ties to President Trump's 2016 campaign, reportedly accessed information from about 50 million Facebook users to influence voters.

The company's slump has spread to the broader market, dragging down tech and social media companies. The S&P 500's tech sector lost 2% Tuesday, with Twitter's 9% tumble leading the way. Snap Inc. fell 4%.

Facebook has become one of America's most valuable companies, with a market cap of around $500 billion. Its $50 billion loss in market value this week is larger than the market valuations of Ford, eBay or Delta.

Lawmakers in both the United States and UK are calling for founder and CEO Mark Zuckerberg to testify about what he know about the compromised data and Facebook's policies to protect user privacy.

Related: Facebook's data crisis deepens as questions mount

Zuckerberg holds around 400 million shares of Facebook. The value of his stake has lost about $7 billion since Friday's market close.

He still owns $70 billion worth of shares in the company, however, and his job is safe because he controls the majority of Facebook's shareholder vote.

A drumbeat of negative headlines and the possibility of tighter regulations have caused investors to unload some of their assets in Facebook, said Benjamin Schachter, an analyst at Macquarie Capital, in a research note.

Related: Is your data safe on Facebook? Not really

Facebook makes money by selling advertisements on its platform. If users log off because they're worried about privacy, or if companies and advertisers slow spending on the site, Facebook's model could be in jeopardy.

"Weaker user or ad growth are the most material risks to the stock," Morgan Stanley analyst Brian Nowak wrote in a note.

Both analysts expect Zuckerberg to go on offense to tamp down lawmakers' pressure and restore investors' confidence.

"We look for [Facebook] to become more assertive about the mistakes it has made, the unintended actions that have occurred on the platform, and how it intends to fix them," Nowak said.

New York Coronavirus Cases

County data is updated nightly.

Confirmed Cases: 420860

Reported Deaths: 32774
CountyConfirmedDeaths
New York City22783223580
Suffolk437861998
Nassau436552194
Westchester362051447
Rockland13942674
Orange11159491
Erie8904671
Monroe4956285
Dutchess4607153
Onondaga3576200
Albany2595128
Oneida2146115
Ulster206292
Niagara149898
Sullivan148948
Putnam144963
Broome112669
Schenectady105837
Rensselaer76530
Saratoga75717
Columbia54037
Madison41217
Ontario36034
Warren30833
Orleans29854
Steuben29842
Fulton29624
Greene29218
Genesee2775
Herkimer2744
St. Lawrence2634
Washington25914
Chautauqua2539
Oswego2533
Wayne2503
Tompkins2340
Chenango2166
Tioga19325
Livingston1768
Montgomery1764
Chemung1713
Cattaraugus1656
Cayuga1522
Jefferson1420
Clinton1274
Wyoming1185
Otsego1165
Delaware1054
Cortland950
Seneca893
Allegany791
Schoharie690
Yates577
Essex550
Franklin540
Lewis410
Schuyler220
Hamilton80
Unassigned00
Utica
Overcast
68° wxIcon
Hi: 89° Lo: 70°
Feels Like: 68°
Oneonta
Scattered Clouds
64° wxIcon
Hi: 86° Lo: 69°
Feels Like: 64°
Herkimer
Overcast
68° wxIcon
Hi: 88° Lo: 70°
Feels Like: 68°
Thendara
Overcast
68° wxIcon
Hi: 81° Lo: 66°
Feels Like: 68°
WKTV Radar
WKTV Temperatures
WKTV Severe Weather
Click here to learn more about A Healthier Mohawk Valley
Ask EPLC Sweepstakes
Saluting Those Who Are Proud 2 Serve
Senior Send-Off brought to you by Herkimer College
WKTV Golf Card - Under 150 left