Confirmation of a US Government Probe Pushes Facebook's Market Loss To $90 Billion (qz.com)

The US Federal Trade Commission has confirmed that it is investigating Facebook over its privacy practices, following recent revelations that data firm Cambridge Analytica harvested and exploited tens of millions of users' data without their permission. From a report: Facebook's stock renewed its downward slide, bringing the company's total loss of market value to around $90 billion since the scandal broke 10 days ago. "The FTC takes very seriously recent press reports raising substantial concerns about the privacy practices of Facebook. Today, the FTC is confirming that it has an open non-public investigation into these practices," said Tom Pahl, acting director of the FTC's Bureau of Consumer Protection, in a statement.

Comments

No

[Anonymous Coward]

Facebook's made-up "market value" went down. *POTENTIAL* money was lost. No actual money was lost. RIAA math at work again.

Re:No

[easyTree]

Have FB suddenly changed business model? If not, why the sudden concern?

Re:No

[Anonymous Coward]

No, but it seems that the Cambridge Analytica mess spilled over and raised more than a dozen eyebrows, and privacy concerns in the UK and here, as well. The authorities have gone into the CA office buildings before any data could be hosed.

The Reg https://theregister.co.uk/ has described how details and metadata collected would even show how much information, when someone who put FB messenger on an android phone would unwittingly list your phone and text, without you explicitly giving FB this opt-in, simply because your contact had that FB/Android combo.

Re: No

[datavirtue]

Facebook is slinging so much data there is no way they have anything under control. There are probably tens of thousands of people who have access to it--the full set. ...and hundreds of thousands who have retained data sets that were supposed to be destroyed. A true First-World disaster.

It's Back Up

[sexconker]

There were tons of reports of it tanking again today early this morning. Yet minutes after those reports hit, the stock rallied.

It's basically flat for the day. Google and Twitter are up significantly.

I'd like for nothing more than all 3 to tank and die, but it's not happening unless Congress makes it happen. And Congress regulating them will simple establish them further, as competition will be much harder.

Re:It's Back Up

[datavirtue]

You can't apologize out of this. Council should have an effective gag order in place.

Re:It's Back Up

[datavirtue]

Way too many plebs use the "service." If every intelligent person left FB (went dark) right now it would trundle on as if nothing happened.

Re:It's Back Up

[PeterGM]

We can, you're absolutely right... but it takes informed knowledge, effort, and motivation to do so.

Any combination of those things are widely lacking in the world of the average Internet user.

I used to think it would be a good thing if everyone used the Internet. I've never missed 1996 as much as I do now, and not just for my hairline.

Re: It's Back Up

[Camarillo Brillo]

Hmmmm, interesting conspiracy theories, but do you have any references for these claims ?

Ridiculous valuation

[innocent_white_lamb]

How many businesses could lose $100 billion dollars and still be operating?

Obviously the valuation of this sort of thing is greatly overblown and has nothing to do with real world work or returns.

As usuall missleading headlines

[Dorianny]

Facebook Corp. hasn't lost anything. Those shares were sold or given away already. The holders of Facebook stock lost a couple of % of the paper value

Re:As usuall missleading headlines

[mspohr]

Yes, it's the stockholders who have lost. From a high near $200 in early Feb to $160 today, they've lost 20%... but only if they bought at the high and sold today. For most people, it's just paper losses (or smaller gains).

Boohoo

[DarkRookie]

They have $90,000,000,000.
Why should I ever feel sorry for this company.

Double standards

[Anonymous Coward]

It is too bad they won't go after Equifax to the same degree they are going after Facebook.

Re:Double standards

[BlueStrat]

It is too bad they won't go after Equifax to the same degree they are going after Facebook.

If the Trump campaign had some link to Equifax then they, too, would be under the gun.

The ONLY reason Facebook is being trashed is because the Left thinks FB/Zucky helped Trump knowingly or unknowingly. That's it. That's the only reason. The people screaming for investigations had no problem with Democrats using FB data for election demographics purposes, nor did they have any real issues with FB's invasiveness regarding privacy prior other than as a minor side-issue they had to make the right noises about.

I'm happy to see more people becoming aware of the importance of privacy, but the hypocrisy surrounding this shitshow is over 9000.

Strat

What surprises me

[jetkust]

I always assumed people using Facebook didn't particularly care about what happens with their data, so I'm no sure who all of a sudden is outraged. I assumed it was way worse than this. Plus why focus on Facebook. There are data brokerage companies out there that are probably doing way creepier things than this.

Re:What surprises me

[srichard25]

No one was upset until Trump used the data. Obama was a modern-day genius when he used the data, and thousands of unknown companies having the data was fine. But Trump using it is what caused some people to go bonkers.

Proper evaluation

[dremon]

To proper evaluate the market value (or, rather, the importance for the global society) simply imagine the consequences of sudden disappearance of the business.

What happens if those overblown tech giants (Facebook, Twitter, Uber, Apple, whatever shit) cease to exist? NOTHING. Some moderate annoyance and shit on the fan for a relatively large group of people. The world moves on, many won't even notice. "Oh dear, we won't get a brand new iAssScratcher this year, what a drama!".

Now, how about John Deere? Market cap 10 times less than the Facepalm, their agricultural machines work probably on half of the Earth's fields. Imagine the consequences of that being vanished.
Or Gazprom, also 10 times less than the bunch of PHP scripts, what happens when there comes no gas anymore, a major fucking blow to the little dream castle of greenpeacers and also huge impact on the whole civilization.

just a paper cut

[epine]

Yes, it's the stockholders who have lost. From a high near $200 in early Feb to $160 today, they've lost 20%... but only if they bought at the high and sold today. For most people, it's just paper losses (or smaller gains).

The stockholders would include almost all of the management, most of the employees, some of the contractors, many key venture capital relationships, and god-knows how many potential activist shareholders, plus speculative financial shops that might be substantially leveraged; 10% is then easily 100%, and 20% could amount to -100% (subject to a hedge floor) should Facebook's price remain depressed.

Ferengi Rule of Disposition #7: Nothing elicits a bigger yawn that someone else's margin call.

Monty Python-The Black Knight

Hmm, much depends on whether the severed arm leaps back up and reunites itself with the brave knight, or remains there decomposing among the dead leaves.

You say that like it's a bad thing

[rsilvergun]

Facebook's business model here is selling your data to anyone who'll pay so they can manipulate you into doing things you otherwise wouldn't want to do. These aren't old school marketing pitches where they tell you why the product/candidate/proposition is so great. These are fine targeted propaganda campaigns where use your prejudices and peccadilloes to push your buttons.

I'm all for putting a stop to competition in that fast growing field.