How years of privacy controversies finally caught up with Facebook

The cost of years of privacy missteps finally caught up with Facebook this week, sending its market value down more than $100 billion Thursday in the largest single-day drop in value in Wall Street history.

How years of privacy controversies finally caught up with Facebook

The cost of years of privacy missteps finally caught up with Facebook this week, sending its market value down more than $100 billion Thursday in the largest single-day drop in value in Wall Street history.

Worries about the rising costs of privacy regulations and controversies, along with declining growth in users and revenue played a key role in a major Wall Street sell-off that started Wednesday night after Facebook reported earnings. Facebook’s stock closed down 19 percent Thursday, at its lowest level in nearly three months. The steepness of the decline suggests investors are reevaluating the viability of Facebook’s core business — collecting extensive data on users so that they can better target them with advertising — in a world in which public pressure is mounting for stricter privacy protections.

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