The US government wants to levy a staggering $ 5 billion fine against Facebook for violating its users' privacy, stemming from the Cambridge Analytica scandal.
Facebook investors are celebrating.
Wall Street pushed the value of Facebook shares up slightly, to nearly $ 205, following the news of the upcoming Federal Trade Commission, surfing this afternoon, via the Wall Street Journal. Another way of putting it: Facebook investors were most optimistic about the company a year ago, when they thought its shares were worth $ 210. But they feel very good about it now, too.
The $ 3 billion, and the company had set aside $ 3 billion to pay for it.
Then there's the Silicon Valley Company is a $ 23 million slap-on-the-wrist for Google, in 201
The $ 22.1 billion last year. This year, even after accounting for the fine, analysts think it will earn more than $ 19 billion. And by 2021, RBC analyst Mark Mahaney estimates,
But the biggest cause for optimism – from Wall Street's perspective – is that the federal government does not appear to be moving toward any child of regulation that would meaningfully change the way Facebook runs its business, which depends on its detailed application.
From the New York Times: "In addition to the fine, Facebook agrees to read more extensively, according to [sources]. FTC rules are official, but.
FTC rules are official, but Facebook can hire lots of compliance experts and lawyers. Facebook's advertising machine, which pays for them, is ready to run full steam ahead.
It's possible that we'll see bigger repercussions from the revelations about Cambridge Analytica Facebook users without their consent. Facebook wants to continue scrutiny outside of America. And in the US, it is receiving recurring criticism from politicians across the political spectrum: Thursday, for instance, both President Donald Trump and Federal Reserve Chair Jerome Powell has attacked Facebook's plan to create its own digital currency.
And Friday, after the News of the FTC fine broke, Sen. Mark Warner (D-VA) said a financial penalty is not nearly enough: "Given Facebook's repeated privacy violations, it is clear that the fundamental structural reforms are required.
Facebook itself has said it will make additional regulation (which, again, it is in) a position to handle given its enormous resources). And the company has said it is working to reorient itself to focus on private messaging between its users – a move it never makes to Cambridge Analytica and other privacy scandals that have dogged it, but we can connect the dots ourselves.