Zuckerberg Is still Facing Harsh Realities as Advisers Halt Ads
$70 billion Shares Gone
Last Monday was another episode of a bad business day for the household name in social media platform, Facebook, as the Cambridge Analytica saga continues to rage on. The latest information is that the company’s shares had dropped yet again when the regulatory body responsible for the protection of users in the U.S published a report of the outcome that was obtained from investigations that truly, Facebook permitted the personal data of its users numbering 50 million to be accessed by the data processing company, and consultants on political matters, Cambridge Analytica.
Furthermore, the intense probe launched by the Federal Trade Commission in America, a commission that only concerns itself with probings into peculiar issues that are crucially connected to the general public, coupled with the demands being made by the U.S Senate committee members and European Parliament, asking for the testimony of the platform’s founder, Mark Zuckerberg, are aggravating the matter.
Zuckerberg is yet to respond to the invitation which is pressing for a deep clarification on the ways Facebook manages the personal information of its users’ accounts. Currently, the social media platform just lost 6.6% in shares.
Meanwhile, the market shares can be seen as pinned down at 13% since the 16th of March, after the company initially admitted that the data of its members were truly sent to the controversial data-based firm, Cambridge Analytica, in an inappropriate manner. From that period till this moment, the social media network is nursing its wounds for losing over $70 billion worth of market shares.
During the low session of Monday’s market, Facebook was already at a loss of US$100 billion worth of market shares. This first started after information began to circulate in the media and printing press houses that the company’s user personal information was transferred and utilized by the staff of Cambridge Analytica, with the purpose of attracting more electorates for the U.S. and European countries during the close-run electoral process.
Lack of Trust
Almost 1/3 of the Facebook’s members in Canada are currently looking for ways to change their personal settings on Facebook. Although the company made efforts to sweep the publicized news from off the media, it was too late. The trouble with Cambridge Analytica became more aggravated instead. The American billionaire and tech guru, Elon Musk, recently removed the official pages for SpaceX and Tesla on Facebook, taking the countless amount of its loyal followers along with him.
However, the chief executive, Mark Zuckerberg, had said that the company has taken erroneous steps in its involvement with Cambridge Analytica, bringing this public discredit to itself. In addition, the social media company as well stands a chance of being threatened by increasing displeasure coming from its partnering members and advertisers. For example, the popular car parts seller in America, the Pep Boys, withheld every traces of its ads from the platform last Monday. Prior to Pepoys‘ action, other big industries such as Commerzbank, the second biggest financial house in Germany, and the internet browsing giant, Mozilla Corp, had already stopped all their ads as well.
There is a strong evidence of distrust in Facebook, even though the company has started to publicly apologize to people in national newspapers across Europe and the US. There was also a public poll last Sunday in America which indicated that countries like Germany and Canada were deeply disappointment in Zuckerberg and Facebook itself.
Close to 1/3 of users in Canada promised to alter some things about the way they run their social media handles from now on.
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