Facebook’s exposure to user data scandals continues to ferment, and its company’s market value has evaporated US$58 billion in the past week.
On the 22nd, Facebook founder Zuckerberg apologized for the incident and promised that similar incidents will not happen again. However, such a solution obviously cannot satisfy the outside world. The company's share price fell from 176.80 USD on Monday (19th) to about 159.30 USD on Friday (23rd).
Facebook was issued at a price of US$38 per share at its initial public offering in 2012, when the company’s market value was close to US$104 billion. With the steady growth of Facebook users and huge profits from digital advertising, Facebook's stock price climbed to $190 in February this year.
According to the 2017 annual report recently published on Facebook, Facebook generated $39.942 billion in revenue from advertising in FY2017, accounting for 98.25% of total revenue, an increase of 49% year-on-year. CNN pointed out that "user data" "dig" has been written on Facebook's "gene", and the purpose of doing so is to make a profit.
Reith, a senior analyst at Hargreaves & middot; Lansdowne, a well-known British investment platform, said that data leakage was a “destructive event” in the history of Facebook. He also stated that Facebook's success is due to the fact that more people use it and the longer it takes, the more people rely on Facebook. Unfortunately, if you lose a large number of users because of this scandal, the losses will also be huge.
Brian · Weiser, a senior analyst at Pivotal Research, a US market research firm, said that he currently holds the most pessimistic view of Facebook’s share price. Wither said that the stock price plummeted indicates that investors are cautious about increasing supervision and users leaving the platform, but advertisers are unlikely to leave Facebook.
Public opinion generally believes that the creation of a Facebook company for 14 years is facing the greatest crisis since its creation. The news that 50 million users' data information was leaked and was involved in the investigation by the regulatory authorities not only caused the stock price of Facebook to plummet, but also caused the information disclosure event to shake the user’s trust in Facebook. “Deleting Facebook” “ Has become a big topic tag on social media.
At present, several U.S. Congressmen have asked Facebook CEO Mark & Middot; Zuckerberg to question the Senate Judicial Committee on this matter. Damian · Collins, chairman of the British Parliament's lower house of the Digital, Cultural, Media and Sports Commission, also asked Zuckerberg to provide relevant evidence to the British Parliament. The EU also wants to summon Zuckerberg to explain.
With regard to the leakage of Facebook user data, the British Information Regulatory Authority applied to the court for a search warrant. Upon approval, the investigators were sent to Cambridge Analytical’s office in London. A spokesperson for the British Information Regulatory Authority said: "The survey is only a small part. The entire investigation will involve personal data being analyzed for political purposes. We now need to collect information, evaluate and examine the evidence before we can reach a final conclusion. ”