Facebook drops in line with market despite fresh scandal
|All eyes will be on Facebook this afternoon for clues as to whether investors are concerned about the latest data scandal to hit the tech giant. Facebook has been paying outside contractors to transcribe audio clips from users of its services. Whilst Facebook have confirmed that they had been transcribing audio clips, they also said that they will no longer do so.
With the Cambridge Analytica scandal barely in the rear-view mirror Facebook have been at it again, with concerns over how Facebook collects and exploits data of its users once again doing the rounds. Let’s not forget that this information collection and exploitation is central to Facebook’s corporate strategy.
The transcribing scandal comes following the announcement of a $5 billion fine at the beginning of July from the Federal Trade Commission in relation to the Cambridge Analytica scandal. It’s telling that the value of Facebook actually increased following the fine in July. The fact that dodgy practises relating to data are continuing prove that the $5billion fine was a mere slap on the wrist for Facebook. The question is whether they will be able to sweep this under the carpet or whether investors will start to get jittery that structural changes will be forced upon Facebook to prevent any more data privacy scandals.
Facebook is down 1.5% on the open, in line with the broader market in early trade. Suggesting that for now at least Facebook is not being punished. I mean, if a $5 billion dollar fine doesn’t cause a sell off, then a bit more bad press shouldn’t, should it?
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.