Facebook, the popular social media network, is yet in another political-social controversy and as expected, the market responded aggressively with Facebook’s stocks drop amidst the investigation hurdled against the tech giant over privacy and security concerns of its policies.
Facebook stock (ticker: FB) was recently down 2% to $174.56, narrowing earlier losses, as the S&P 500 was about flat.
Earlier this week, the tech company was yet again subjected into hot water when a fake video of the company’s Chief Executive and founder, Mark Zuckerberg, surfaced the company-owned Instagram showing an apparently edited Zuckerberg talking about how he controls the world. The new viral fake video was a political response staged following Facebook’s refusal to remove Nancy Pelosi’s fake video on its platform.
Moreover, the shares fell as The Wall Street Journal reported the existence of emails that the newspaper said: “appear to show Chief Executive Mark Zuckerberg’s connection to potentially problematic privacy practices at the company, according to people familiar with the matter.”
The report follows the announcement of legislators and regulators that they are eyeing Facebook and other tech giants for a series of antitrust investigations. While it isn’t clear what the emails say, they could complicate the company’s attempts to settle the continuing FTC investigation, which has focused on the company’s safe-keeping of user data.
“Facebook and its executives, including Mark, at all times strive to comply with all applicable law, and at no point did Mark or any other Facebook employee knowingly violate the company’s obligations under the FTC consent order,” reads a Facebook statement recently.
Until now, the company has been plagued with issues regarding the way they handle user data, and analysts were unanimous that it drags Facebook’s market performance. All of these controversies that Facebook is facing say analysts could bring the company’s stocks down until they are resolved.