A rough week for Facebook and other tech giants ended roughly on Friday as the Cambridge Analytica scandal spread and captured more victims.
Facebook shares lost 13.9% in value over the week, more than double the 6% slide in the S&P 500 index, the US market benchmark.
That drop clipped $US74.6 billion from the company’s market value after the Cambridge Analytica story developed into a full blown scandal that ensnared other tech stocks as well.
Alphabet (Google) shares lost 10% last week, Twitter shares slid 12.8%. These social media based stocks were seen as the biggest losers.
But by the end of the week shares in Amazon (which was seen as not impacted) lost nearly 5%, Netflix shares dipped 5.5% and Apple shares lost 7.3% as investors took profits from the big gains these giants have made this year.
Facebook closed down 3.3% to $US159.39 in the regular session on Friday while Alphabet shares were down 2.6% and Twitter shares only lost half a per cent.
By the close on Friday though Amazon, with a market value of $US748 billion remained second to Apple’s $US857 billion with Alphabet back in third with just on $US731 billion. The previous Friday Alphabet was second behind Apple with Amazon a close third.
Marketwatch.com reported that US Congressional politicians have asked for hearings and testimony from Facebook executives and there are reports of some users existing. media reports said billionaire Elon Musk’s companies Space X and Tesla Inc. apparently deleted their Facebook pages Friday after users called for Musk to take action.
