Facebook’s value drops $30 billion after Cambridge Analytica Scandal

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Facebook’s share price dropped close to 6% in early trading on Monday, most likely thanks to the news that the political-research firm Cambridge Analytica used its site to harvest 50 million user profiles illegitimately.

According to Markets Insider, Facebook’s share price stands at $174.30 in early trading, down from $185.09 at the market close on Friday. The drop wipes more than $30 billion off Facebook’s market cap.

Facebook is under huge pressure from lawmakers in the US and the UK over the way it handles user data and how that data can be manipulated for targeted political advertising.

The Guardian and The New York Times reported on Saturday that Cambridge Analytica had accessed data from 50 million Facebook users during the 2016 US presidential campaign without their permission. It used that information for highly targeted political ads on Facebook.

 A former Cambridge Analytica employee, Christopher Wylie, blew the whistle, saying: “We exploited Facebook to harvest millions of people’s profiles. And built models to exploit what we knew about them and target their inner demons. That was the basis that the entire company was built on.”

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