By now, most people are aware of the Cambridge Analytica scandal and the recent historical drop in Facebook’s stock price and valuation. For those who aren’t familiar with the situation, here’s a brief timeline:
March 17, 2018 – The Guardian and The New York Times report that as many as 87 million Facebook profiles were harvested for Cambridge Analytica. Christopher Wylie, co-founder of Cambridge Analytica, claims that the data sold to the company was used to build psychographic profiles of people and then deliver pro-Trump content to them online.
March 21, 2018 – In a Facebook post, Mark Zuckerberg addresses the Cambridge Analytica scandal. Zuckerberg outlines a three-step plan to solve any future misuse of user data:
1. Investigate any third-party apps that had access to large amounts of information before Facebook’s platform change in 2014
2. Restrict developers’ access to user data
3. Provide users with a tool that shows them what apps have access to their data
April 10, 2018 – Zuckerberg testifies before a joint session of the Senate Commerce and Judiciary committees in what turns into a long and awkward conversation between older Senators that seem out of date with modern social media and a very nervous Zuckerberg.
April 25, 2018 – Despite the backlash from the Cambridge Analytica scandal, Facebook reports Q1 earnings well above analysts’ estimates. In a conference call that afternoon, Zuckerberg reflects on the earnings report, “Despite facing important challenges, our community and business are off to a strong start in 2018. Over the next three years we’re going to keep building Facebook to not only be a service that people love to use, but also one that’s good for people and good for society.”
July 26, 2018 – Following the first full quarter after the Cambridge Analytica scandal, Facebook loses about $119 billion of its value as the company’s share price drops by almost 19% marking the biggest single day drop in U.S. market history.