Eli Ridder, Rob Pfieffer | The Avro Post
Facebook shares surged by 4.5 per cent on Tuesday as the social media company’s chief executive was questioned by the United States Senate over privacy concerns in the wake of the Cambridge Analytica scandal.
Chief Executive Officer Mark Zuckerberg took to the stand as part of a joint hearing by the Judiciary and Commerce committees with his company’s stock up 2.5 per cent.
Facebook Inc.’s stock dropped from $185.09 USD on the NASDAQ on Mar. 16 to a year low of $152.22 on Mar. 27, a number it hasn’t touched since the spring of last year.
Facebook hit a high of $195.32 per share in February, but have fallen almost 11 percent over the past month, as reports emerged that Facebook user data was misused.
Cambridge University researcher Aleksandr Kogan created a personality app in 2013 that was used by some 300,000 people, but was able to access user information associated with millions of Facebook accounts.
Zuckerberg’s company said that data was later used by another firm, Cambridge Analytica, against Facebook’s rules, a major misuse that was revealed by The Guardian, The New York Times and Channel 4 in March.
Cambridge Analytica was affiliated with U.S. President Donald Trump’s campaign.
Mr. Trump has not commented on the hearing.
Other social media stocks rallied as well YouTube owner Google was up nearly 2 per cent, and Twitter surged 7.5 per cent on Tuesday afternoon.
While the stocks in New York closed at 4 p.m., Zuckerberg’s hearing continues on Capitol Hill.
Live via NBC News on YouTube, or follow the Post’s live Twitter updates on this hearing.
More details to follow.