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Facebook shares have recently suffered a massive loss after the media reported that a third party was able to access its users’ personal information.
In 2017, Facebook was one of the most lucrative companies in the world, with its stock increasing by 53%. However, the social media company took a hit after it was reported that Cambridge Analytica illegally accessed Facebook’s user information. Cambridge Analytica allegedly used the information to create profiles of American voters, which were used to help Donald Trump win the 2016 US Presidential Election. Because of this, Facebook not only lost $100 billion, it also lost the trust of Americans.
To address the issue, Facebook founder and CEO Mark Zuckerberg promised to fix the problem. The company also ran advertisements in several newspapers in the United States to express its apology.
However, one investor from New York called for organizational changes in Facebook. He said that the issue serves as a wake-up call to social media and Internet companies. This investor also said that Facebook should have independent officers who are experts in data usage and ethics to mitigate the risk of personal information misuse.
Despite the issue, some experts believe that investing in Facebook is still a good idea. For instance, a global Internet analyst believes that investors will earn from buying Facebook stocks because people around the world still use it.
SimilarWeb, a market intelligence platform, supports this idea. The company reported that Facebook usage worldwide is still the same and is not greatly affected by the personal information leak in the United States.