Facebook shares drop 2% as nearly $50BILLION wiped off value in THREE DAYS

Facebook’s share price reacted to the ongoing scandal involving data firm Cambridge Analytica by dropping by 2 percent on Wednesday – this equates to nearly $50billion of market capitalisation of Facebook’s value.

The social media giant’s shares have lost about nine percent in just two days, and hurt shares of other social media companies such as Twitter and Snap Inc as the issue raised broader questions about consumer privacy and whether tougher regulation is on the horizon.

Facebook is facing lawmakers’ scrutiny in the United States and Europe over UK-based political consultancy Cambridge Analytica’s alleged improper use of 50 million Facebook users’ personal data to target voters during the US 2016 election.

Facebook has denied the data breach, and Mark Zuckerberg, chief executive of Facebook has remained quiet on the issue.

Mr Zuckerberg’s company suspended Cambridge Analytica when reports emerged that the data company did not delete information about Facebook users that had been inappropriately shared.

Channel 4 News led an undercover sting on the company which resulted in the suspension of Alexander Nix CEO of Cambridge Analytica.

Christopher Wylie, the whistleblower of the company who worked with Cambridge Analytica alleged that it amassed large amounts of data through a personality quiz on Facebook called This is your Digital Life.

He claims 270,000 people took the quiz, but the data of 50million users in the US was also acquired through their friends network.

This data was then allegedly sold to the company, who then in turn used it to psychologically profile people and target them for pro-Trump advertisement with the aim of influencing the 2016 presidential election.

Cambridge Analytica has denied Mr Wylie’s accuations and said it only receives and uses data that has been obtained legally and fairly.

The backlash against Facebook over its handling of personal data has seen calls for users to delete their profiles.

In a statement, Facebook said: “The entire company is outraged we were deceived.

“We are committed to vigorously enforcing our policies to protect people’s information and will take whatever steps are required to see that this happens.”

Damian Collins, the chair of the Commons culture committee said: “Facebook was not deceived by Cambridge Analytica.

“They knew what they had done two years ago and only acted against them when it was reported in the press.

“Mark Zuckerberg needs to speak about this, but he won’t even answer questions from his own employees.”

In an indication of the backlash against Facebook, WhatsApp co-founder Brian Acton appeared to add his voice to critics of Facebook following the row, tweeting “It is time” with the #deletefacebook hashtag.

Along with WhatsApp co-founder Jan Koum, Mr Acton sold the app to Facebook for 19 billion dollars (£11.4 billion) in 2014.