NEW YORK- Facebook shares rose on Thursday by 4.2%, after Chief Executive Officer Mark Zuckerberg said the social network had not seen any meaningful impact on usage or ad sales in the wake of a data privacy scandal.
Facebook shares dropped by 16%, wiping out more than $80 billion from its market value since 16 March, after the New York Times and London’s Observer newspaper broke the news that the use of Facebook user data by political consultancy Cambridge Analytica for its advantage.
Evercore ISI analyst data has shown that Zuckerberg claim is correct, the company is the forth most downloaded app globally across more than 40 applications tracked on Android and iOS app stores.
Mark Zuckerberg is expected to testify to congress of the data privacy scandal and his testimony will likely influence the US stock, as the company is currently trading higher than usual.
Deutsche Bank analyst said, “We suspect that looking back a year from now, if not sooner, this episode will have been a uniquely compelling buying opportunity in the mega-cap internet space,”
Whilst Wells Fargo analyst Ken Sena said, “While it’s clear that investor sentiment has been materially impacted by (the) Cambridge Analytica revelations, we believe FB is acting proactively and aggressively to tighten its privacy controls and increase the level of transparency into its practices.”
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