Facebook's Regulatory Issues Overshadow a Solid Earnings Beat
Facebook (NASDAQ: FB) investors have been enjoying what has been a banner year for its stock, so far. The stock had racked up 47% gains before the year was halfway over. That rate is remarkable considering the company was staring down the barrel of a Federal Trade Commission (FTC) investigation for the data-privacy scandal sparked by Cambridge Analytica all year. As a result of that investigation, Facebook agreed to pay $5 billion and submit to a host of oversight measures to settle allegations it misused consumer data.
So when the company reported second-quarter earnings on Wednesday, investors were feeling good about the stock and hoping the worst was over. Then Facebook disclosed, as part of its report, that the FTC had just started a new antitrust investigation into the company, while the Department of Justice announced that it would open an antitrust review of a number of big tech companies -- including Facebook. Looks like the investor worries are just getting started.
Facebook CEO Mark Zuckerberg. Image source: Facebook.
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