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Facebook's stock tumbles again. Data scandal wipes away $50 billion

Facebook's stock is sliding for the second day in a row.Shares of Facebook fell another 5% Tuesday on the heel...

Posted: Mar 20, 2018 1:33 PM
Updated: Mar 20, 2018 1:33 PM

Facebook's stock is sliding for the second day in a row.

Shares of Facebook fell another 5% Tuesday on the heels of the company's worst day in four years. More than $50 billion has been wiped off Facebook's market value this week.

Investors punished Facebook after Cambridge Analytica, which had ties to President Trump's 2016 campaign, reportedly accessed information from about 50 million Facebook users to influence voters.

The company's slump has spread to the broader market, dragging down tech and social media companies. The S&P 500's tech sector lost 2% Tuesday, with Twitter's 9% tumble leading the way. Snap Inc. fell 4%.

Facebook has become one of America's most valuable companies, with a market cap of around $500 billion. Its $50 billion loss in market value this week is larger than the market valuations of Ford, eBay or Delta.

Lawmakers in both the United States and UK are calling for founder and CEO Mark Zuckerberg to testify about what he know about the compromised data and Facebook's policies to protect user privacy.

Related: Facebook's data crisis deepens as questions mount

Zuckerberg holds around 400 million shares of Facebook. The value of his stake has lost about $7 billion since Friday's market close.

He still owns $70 billion worth of shares in the company, however, and his job is safe because he controls the majority of Facebook's shareholder vote.

A drumbeat of negative headlines and the possibility of tighter regulations have caused investors to unload some of their assets in Facebook, said Benjamin Schachter, an analyst at Macquarie Capital, in a research note.

Related: Is your data safe on Facebook? Not really

Facebook makes money by selling advertisements on its platform. If users log off because they're worried about privacy, or if companies and advertisers slow spending on the site, Facebook's model could be in jeopardy.

"Weaker user or ad growth are the most material risks to the stock," Morgan Stanley analyst Brian Nowak wrote in a note.

Both analysts expect Zuckerberg to go on offense to tamp down lawmakers' pressure and restore investors' confidence.

"We look for [Facebook] to become more assertive about the mistakes it has made, the unintended actions that have occurred on the platform, and how it intends to fix them," Nowak said.

Oregon Coronavirus Cases

Data is updated nightly.

Cases: 132412

Reported Deaths: 1799
CountyCasesDeaths
Multnomah28237458
Washington18512171
Marion16085238
Clackamas11577138
Lane8219108
Jackson686284
Umatilla670968
Deschutes490736
Yamhill316245
Malheur312452
Linn310246
Klamath242238
Polk241340
Josephine170633
Jefferson168725
Benton168414
Douglas166643
Union110416
Wasco106323
Columbia103318
Lincoln98517
Hood River94821
Coos93315
Morrow92710
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Crook60410
Baker5665
Tillamook3622
Curry3185
Lake2295
Grant2131
Harney1734
Wallowa963
Gilliam481
Sherman470
Wheeler201
Unassigned00

California Coronavirus Cases

Data is updated nightly.

Cases: 2955323

Reported Deaths: 33342
CountyCasesDeaths
Los Angeles100392313741
San Bernardino2482851560
Riverside2352352517
San Diego2098972065
Orange2093652320
Santa Clara914661060
Kern83547558
Sacramento802791080
Fresno79950932
Alameda65679757
Ventura59061412
San Joaquin56484748
Contra Costa50627430
Stanislaus41925739
Tulare40176501
Monterey34959249
San Mateo31291294
San Francisco28574254
Imperial24944463
Solano24654105
Santa Barbara23538228
Merced23492296
Sonoma23204234
Kings18661110
Placer16761173
San Luis Obispo15129128
Madera12883130
Santa Cruz11776113
Marin11345153
Yolo10240131
Shasta9594117
Butte9233121
El Dorado751544
Sutter748477
Napa723139
Lassen509413
San Benito485043
Yuba481827
Tehama397142
Tuolumne330438
Nevada309973
Mendocino307631
Amador295329
Lake243428
Humboldt226324
Glenn182419
Colusa16919
Calaveras153823
Siskiyou140813
Mono10834
Inyo92429
Del Norte8472
Plumas5735
Modoc3783
Mariposa3434
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