Facebook moves on from data scandal as stock reaches all-time high

Facebook appears to have weathered the storm

Facebook appears to have emerged from the Cambridge Analytica scandal relatively unscathed as stock reached a record high this Friday (6 July).

Shares in the social network gained 5% to reach an all-time peak of $203.64 a share, before closing just below that price.

The gains mark a recovery from March, when Facebook shares hit a low of $149.02 per share, at the height of the data storm.

Roughly translated, Facebook’s market value is close to $590bn, with chief executive officer Mark Zuckerberg’s net worth now closer to the top of Bloomberg Billionaires Index.

Though investors seem unconcerned, Facebook’s troubles aren’t yet over as the FBI, SEC, and FTC have joined the Justice Department asking questions over Cambridge Analytica’s use of data.

In May, Cambridge Analytica filed for insolvency issuing a statement on its website labeling the public vilification it faced since the Guardian and Channel 4's exposé as "unfounded accusations," claiming their activities are not only legal but also "widely accepted as a standard component of online advertising."

Join us, it's free.

Become a member to get access to:

  • Exclusive Content
  • Daily and specialised newsletters
  • Research and analysis

Join us, it’s free.

Want to read this article and others just like it? All you need to do is become a member of The Drum. Basic membership is quick, free and you will be able to receive daily news updates.