Facebook Shares Extend Plunge After FTC Probe Revealed

Following yesterday's collapse, one might have expected a bip-buyer's bounce, but thanks to headlines from Bloomberg revealing the FTC is said to be probing Facebook for use of personal data, Facebook shares are tumbling once again in the pre-market...

Bloomberg reports that the U.S. Federal Trade Commission is probing Facebook Inc. over whether it violated terms of a consent decree over its use of personal data, according to a person familiar with the matter.

The investigation involves whether it allowed Cambridge Analytica to receive some user data in violation of its policies, said the person, who asked not be identified because the investigation is confidential.

The initial reaction was further selling with FB -3% in the pre-market...

For context, FB Shares are now testing the spike lows from the February XIV crash...

In a note published on Monday, Macquarie Research analysts detail their worries about how Zuckerberg is going to resolve the Cambridge Analytica issue.

"We think [Facebook] could take more radical actions than it has in the past to limit the use of audience segmenting, ad targeting, data sharing, and other privacy related issues that could lower the monetization of FB data," the analysts said.

"That is our concern for the financials."

Macquarie outlined two additional areas of risk to Facebook and its stock from the ongoing scandal: Political and legal risk for Facebook, and people starting to dislike social media.