Facebook shares drop on widened probe
Shares of Facebook Inc fell 2 per cent yesterday, after a report that a federal probe on the data breach linked to Cambridge Analytica had been broadened and would include more government agencies. Facebook shares were down 2pc at $193.36 in early trading on the Nasdaq, erasing nearly $12 billion from the company’s market valuation. The stock lost about 18pc of its value in the seven trading days after the data scandal broke, but has since gained about 27pc to date. A Facebook spokesperson told Reuters late on Monday that it is cooperating with officials in the US, UK and beyond.
“We’ve provided public testimony, answered questions, and pledged to continue our assistance as their work continues,” the spokesperson said. The questioning from federal investigators centers on what Facebook knew three years ago and why the company did not reveal it at the time to its users or investors, the Washington Post said.
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