FB Stock Dips 3.30% on Thursday, Facebook Accused of Watching Instagram Users via Phone Camera

Updated on Sep 18, 2020 at 1:24 pm UTC by · 3 mins read

Facebook shares reached their all-time high of $304.67 during the pandemic. However, yesterday the FB stock price went down.

Facebook Inc (NASDAQ: FB) stock fell 3.30% on Thursday, September 17, to close the day trading at $254.80. The fall of the Facebook shares price is largely being attributed to accusations pointed at the social media giant spying on Instagram users.

According to a post by media outlet Bloomberg, the company is again being sued for allegedly spying on Instagram users, this time through the unauthorized use of their mobile phone cameras.

With the United States Presidential election approaching, when the company faces a lot of trouble with user data usage, FB shares are currently under siege.

According to metrics provided by Marketwatch, Facebook shares have added approximately 24.15% year to date through Thursday. In addition, Facebook shares have managed to climb 6.71% in the past three months.

On the weekly chart, Facebook shares have been on the rising channel for the better part of the year.

Notably, Facebook shares reached their all-time high, $304.67 during the pandemic. Despite being in the red for the past two weeks, Facebook shares are looking at a possible breakout to their new ATH.

Worth noting is the fact that Facebook shares just broke above its multi-year resistance level, and are presumably in a new bull rally.

With 50 analysts ratings, Facebook shares on average received an OVER rating, according to Marketwatch.

Despite the challenges the company is currently experiencing, with a market capitalization of approximately $750.72 billion as of the time of publication, it is well-positioned to win in the long term.

Instagram Case and Other Crucial Factors Affecting Facebook Shares

Facebook shares future prospects are heavily underpinned on how the company’s management deal with the user data mismanagement issues in the near future.

Facebook was accused of collecting personally identifiable information of “up to 87 million people” by the political consulting and strategic communication firm Cambridge Analytica. This tainted its image in the global regulators especially in its home ground and in Europe.

Recently, the company went to court to appeal against a preliminary order by Ireland’s privacy regulator to suspend its data transfers from Europe to the United States.

Less than a month, the company is now being sued for apparently spying on Instagram users through the camera.

According to Bloomberg, the lawsuit springs from media reports in July that the photo-sharing app appeared to be accessing iPhone cameras even when they weren’t actively being used.

By “obtaining extremely private and intimate personal data on their users, including in the privacy of their own homes,” Instagram and Facebook are able to collect “valuable insights and market research,” according to the complaint.

However, the company vehemently denied the accusations and blamed the issue in a possible undetected malicious bug, which its developers are working to correct.

Share:

Related Articles

Australian Prosecutors Drop Criminal Case against Meta over Crypto Scam Ads

By April 12th, 2024

Forrest vowed to continue his fight and advocate for legal reform to hold foreign-owned social media platforms accountable.

Super Bowl 2024 Next Week Will Not Feature Any Crypto and AI Ads

By February 5th, 2024

Two years ago, crypto advertisers occupied the top ad spots at Super Bowl. But the FTX debacle has pushed them out of the game making way for traditional businesses.

EU Exploring Stricter Regulations for Large AI Models under Pending AI Act

By October 9th, 2023

Under the Act, companies building and deploying AI models would need to perform risk assessments and label AI-generated content.

Exit mobile version