Investors take $5B Facebook settlement in stride

The FTC investigation was triggered by revelations that the data-mining firm Cambridge Analytica had harvested information on as many as 87 million Facebook users.

24 July 2019 | 19:15

Source: Associated Press

  • Source: Associated Press
  • Last update: 24 July 2019 | 19:15

In this April 10, 2018, file photo Facebook CEO Mark Zuckerberg takes his seat to testify before a joint hearing of the Commerce and Judiciary Committees on Capitol Hill in Washington. (AP Photo)

WASHINGTON: Facebook is doing just fine on Wall Street, despite being slapped with a record $5 billion fine for its mishandling of personal information.

The company’s stock had slipped by less than 1% to $201.51 in Wednesday’s midday trading, a few hours after the Federal Trade Commission announced the settlement. The FTC investigation was triggered by revelations that the data-mining firm Cambridge Analytica had harvested information on as many as 87 million Facebook users.

Investors are taking the news in stride because the settlement won’t change Facebook’s lucrative ad system, which is expected to bring in most of the company’s projected $69 billion in revenue this year. Facebook is due to release quarterly results later Wednesday.

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