Facebook's massive data breach is 'opening a can of worms' (FB)

pulse

March 19, 2018 4:32 PM

The Facebook breach is scaring investors. And the broader concern is less about content than it is about one great threat to the industry.

A political research firm with ties to President Trump reportedly accessed 50 million Facebook user accounts without authorization.
Macquarie analyst Ben Schachter said that the real concern for investors is that these breaches may prompt regulation that could hurt Facebook's earnings.
News of the breach comes as both Facebook and Snapchat are having broader issues with questionable content.

Facebook shares are down more than 6% Monday on news of a massive data breach. The stock closed Friday at $185 a share and is down to a low of $173 Monday.

News broke over the weekend that a political research company, Cambridge Analytica with ties to President Trump, had accessed 50 million Facebook user accounts without authorization.

"The concern is that you're opening a can of worms," Macquarie analyst Ben Schachter told Business Insider. "Every time I see headlines like this," he added, he gets "concerned."

Snap was recently forced to pull an advertisement on its platform asking users

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