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Facebook shares rise 4.2% as Mark Zuckerberg soothes investors

The company's shares have sunk 16 percent, wiping more than $80 billion from its market value since March 16

Reuters 

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A 3D-printed Facebook logo is seen in front of a displayed stock graph in this illustration

Shares of Inc rose as much as 4.2 percent on Thursday, after said had not seen any meaningful impact on usage or ad sales in the wake of a data scandal.

The company's shares have sunk 16 percent, wiping more than $80 billion from its market value since March 16, when and London's Observer newspaper broke news of the use of its data by political consultancy Cambridge Analytica.

Data from Evercore ISI analysts confirmed Zuckerberg's claim, with having the top four most downloaded apps globally in March across more than 40 applications tracked in and iOS app stores.

Also, Facebook's social app downloads improved on a monthly basis both in the U.S. and globally, according to the data. expanded its share of social app downloads in March by 33.2 percent from 30.1 percent.

Several Wall Street analysts said the stock decline presented a good opportunity to buy into the social network's previously high-flying shares, although they cautioned that much will still depend on Zuckerberg's testimony to next week.

"We suspect that looking back a year from now, if not sooner, this episode will have been a uniquely compelling buying opportunity in the mega cap space," Deutsche analysts said.

The data scandal led to the "DeleteFacebook" hashtag trending on and several celebrities including Cher, and Chief deleted their accounts.

also chimed in with U.S. Pep Boys, company and German suspending advertisement on the platform.

said on Wednesday he accepted blame for the data leak and should have done more to audit and oversee third-party app developers like the one that Cambridge Analytica hired in 2014.

He will testify about the matter next Tuesday and Wednesday during U.S. congressional hearings.

"While it's clear that investor sentiment has been materially impacted by (the) Cambridge Analytica revelations, we believe FB is acting proactively and aggressively to tighten its controls and increase the level of transparency into its practices," said.

were up 2.6 percent at $159.23 in morning trade on Thursday.

 

First Published: Thu, April 05 2018. 21:23 IST
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