Facebook’s Cambridge Analytica data debacle could be more damaging to the company than any of its other recent missteps.
The news that the data analytics firm that helped Donald Trump get elected president was able to amass data on 50 million users without their permission has sent Facebook’s market value down nearly $50 billion since Friday. That’s the stock’s biggest two-day decline ever. As of market close on Tuesday, Facebook’s stock price was $168, about 10 percent lower than it was on Friday, according to FactSet.
Tuesday also marks Facebook’s biggest trading day since 2014, with upward of 129 million shares of Facebook stock changing hands.
Facebook () is under intense pressure to answer these questions — and more — after it admitted that a company linked to President Donald Trump’s campaign had accessed and improperly stored a huge trove of its user data.
The controversy erupted as UK media and The New York Times reported that data analysis firm Cambridge Analytica tried to influence how Americans voted using information gleaned from millions of Facebook profiles.
Netflix is still riding high off of its “beautiful” fourth-quarter earnings report in January. The company added two million more streaming subscribers than expected, and Wall Street responded. Its stock is up 42 percent since then and is now worth about $140 billion.
Netflix has now overtaken McDonald’s and General Electric in market value. It’s edging up on IBM. More importantly, it’s nearing the value of some of its toughest competitors, like Disney and Comcast. Netflix surpassed Time Warner in 2017 and it’s long been worth more than CBS or Viacom.
The Disney comparison is significant since Disney is trying to create its own array of streaming services. Disney also owns a 30 percent stake in Netflix competitor Hulu. After its multiyear contract with Netflix is up, Disney is likely to pull Marvel and Lucasfilm content from Netflix.
Here’s how Netflix’s market cap has changed since the beginning of 2017: