Dubai: Facebook shares fell on Wednesday, extending losses for another session after the massive data scandal hit the world’s largest social media company.
Facebook came under fire after it allowed a third-party, Cambridge Analytics, to access personal data of 50 million users. The data company, which worked for US President Donald Trump during the 2016 campaign, may have been used to sway public opinion during the US elections.
Facebook shares fell 1.05 per cent to $166.39 (Dh610.65), after losing more than 9 per cent since Monday. The market capitalisation fell to $483 billion on Wednesday from $537 billion on March 16.
“We need to wait for more clarity on what’s happening. I wouldn’t touch Facebook shares for now,” said Nadi Bargouti, head of asset management with Emirates Investment Bank. “We won’t have a trickle down impact on other tech stocks as this is a company specific matter and we continue to be favourable selectively on tech stocks.” The Nasdaq Composite Index was 0.05 per cent higher to 7,367.67.
Meanwhile, according to reports, DZ Bank was the third Wall Street brokerage this week to make a rare cut in price targets for Facebook. The brokerage cut its target by $20 to $210, still way above the current share price of $165 but adding to signs that Wall Street analysts are waking up to the risks to the company.
