Facebook’s recent share price drop comes as no surprise, seeking as news of its involvement with Cambridge Analytica and Donald Trump’s 2016 presidential election campaign.
On Friday, March 16, around 5:00 p.m. Eastern Time, the price of a single share of Facebook was just over $185. When trading resumed the following Monday, its price dropped to $175. Today, it sits at just $163, around 1:00 p.m. Eastern Time.
Monday, March 19, 2018, marked the worst trading day in Facebook’s history since its IPO six years ago. Its market cap currently sits at roughly $477 billion, down about $50 billion since last Friday.
Standard & Poor’s 500’s technology sector collectively lost 2 percent today, with individual stocks Twitter and Snap dropping 9 and 4 percent, respectively, nearly as bad as Facebook.
In response to allegations regarding Facebook’s and its executives’ decision not to disclose the breach of 50 million personal accounts, United States and United Kingdom officials have publicly asked Facebook CEO Mark Zuckerberg to share all that he knows what data was compromised, and how the tech giant can protect users’ privacy.
Currently, Mr. Zuckerberg personally holds roughly 400 million shares of the tech giant. Since the close of trading on Friday, his personal share has dropped roughly $7 billion, to this date. Pocket change, huh?
Still, Zuckerberg’s job at the company is unarguably safe, as he singularly controls the majority of Facebook shareholders’ voting power. Coming days and weeks might not be kind to Facebook, as regulations could be around the corner.