uploads///facebook pixabay

Why Did Facebook Stock Rebound?

By

Apr. 17 2018, Updated 2:29 p.m. ET

Facebook stock rebound

Facebook (FB) stock jumped 4.5% on April 9, 2018, after three weeks of mayhem. The rise was reassuring to investors following two days of testimony from the company’s CEO, Mark Zuckerberg, before Congress.

Facebook came under scrutiny when a data misuse scandal surfaced in March 2018. The social media giant was targeted for putting the personal information of millions of its users at risk, which pulled down its shares.

Article continues below advertisement

Cambridge Analytica scandal

The news about Facebook sharing users’ personal information emerged on March 19, 2018, and shook the entire tech sector, especially social media players. In 2014, data analysis company Cambridge Analytica collected the data of ~87.0 million users through a survey and misused it by influencing the US presidential election.

Impact on FAANG stocks

The data breach issue and other recent events related to fake Russian accounts influencing the US presidential election have raised concerns related to Facebook’s business operations and its data and privacy policies. The incident has significantly affected Facebook stock, eroding its market value by almost $50 billion since March 17.

On March 19, the company’s stock tumbled 6.8%, its worst fall in the last four years. Naturally, the impact of the scandal will affect the FAANG stocks—Facebook, Amazon (AMZN), Apple, Netflix (NFLX), and Google’s parent, Alphabet (GOOGL). The FAANG stocks, which make up over 11% of the S&P 500 Index, posted falls of 16.2%, 3.7%, 4.1%, 5.9%, and 11.6%, respectively, between March 12 and March 29.

Advertisement

More From Market Realist

  • SemiLEDS logo over LED lighting
    Company & Industry Overviews
    There's Still Time to Get in on SemiLEDS (LEDS) Stock
  • Trader on the NYSE
    Company & Industry Overviews
    What Are the Most Expensive Stocks Ever?
  • Michelob Ultra beer
    Company & Industry Overviews
    AB InBev Is the Top Beer Brand Worldwide—Is It a Monopoly?
  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.