Facebook Stock Plunges After WSJ Drops Bombshell Privacy Report

By CCN Markets: Facebook stock plunged during mid-day trading on Wednesday after the Wall Street Journal published a bombshell report connecting CEO Mark Zuckerberg with questionable privacy practices at the social media behemoth.

Facebook Stock Drops Nearly 3% in Minutes After WSJ Publishes Report

FB shares dropped as low as $172.88 in the immediate aftermath of the report's publication, knocking the stock nearly 3% off its previous close at $178.10.

facebook stock
A bombshell Wall Street Journal report sent Facebook stock into a tailspin. | Source: Yahoo Finance

According to the Wall Street Journal, an FTC investigation had spurred the discovery of a trove of potentially-damning emails linking Mark Zuckerberg to controversial privacy scandals that have roiled Facebook in recent years.

Per the report, Facebook itself unearthed those emails and turned them over to the FTC, and anonymous sources familiar with the matter say they could slap the company with a public relations nightmare if they ever become public.

Report: Emails Show Mark Zuckerberg Flaunting Facebook User Privacy

Wall Street Journal reporters did not have access to the email transcripts, but sources told the publication that the emails show that Mark Zuckerberg and other Facebook employees were aware - and alarmingly cavalier - about third-party developers having the ability to engage in mass data collection of Facebook users.

It's not clear whether the email exchange would violate an FTC consent decree that has been in place since 2012. Facebook denies any wrongdoing.

“We have fully cooperated with the FTC’s investigation to date and provided tens of thousands of documents, emails and files. We are continuing to work with them and hope to bring this matter to an appropriate resolution,” a Facebook spokesperson said. “Facebook and its executives, including Mark, at all times strive to comply with all applicable law, and at no point did Mark or any other Facebook employee knowingly violate the company’s obligations under the FTC consent order.”

Zuckerberg: 'The Future is Private' - And Facebook Will Be Too

Facebook, Mark Zuckerberg
Mark Zuckerberg claims that Facebook will be a champion for privacy - moving forward, anyway. | Source: AP Photo/Marcio Jose Sanchez, File

While privacy scandals have hounded Facebook in the past, Zuckerberg claims that the company has turned a corner.

Earlier this year, he claimed that the social media company would become a "privacy-focused communications" platform. “The future is private,” he said.

Facebook stock last traded at $174.12 for a decline of 2.23%.

Read the full Wall Street Journal report here.

This is breaking news. Check back for updates.

This article is protected by copyright laws and is owned by CCN Markets.

About the author

Josiah Wilmoth
Josiah Wilmoth

Josiah is the US Editor at CCN, where he focuses on financial markets and cryptocurrencies. He has written over 2,000 articles since joining CCN in 2014. His work has also been featured on ZeroHedge, Yahoo Finance, and Investing.com. He holds bitcoin, but does not engage in day trading. He lives in rural Virginia. Follow him on Twitter @y3llowb1ackbird or email him directly at josiah.wilmoth(at)ccn.com.

Do NOT follow this link or you will be banned from the site!