Facebook stock ends Monday down 7 percent after data breach report

Facebook stock ends Monday down 7 percent after data breach report
© Greg Nash

Facebook stock fell sharply Monday as the social media company takes fire for the use of its data by the outside firm Cambridge Analytica, which obtained private information for about 50 million Facebook users.

Cambridge Analytica then used the data to try to help President TrumpDonald TrumpFreedom Caucus member condemns GOP group pushing 'Anglo-Saxon political traditions' MyPillow CEO Mike Lindell's new free speech site to ban certain curse words Secret Facebook groups of special operations officers include racist comments, QAnon posts: report MORE's 2016 presidential campaign, according to an investigative report published Saturday by The New York Times. 

Shares in Facebook fell as much as 7.5 percent Monday to $170, far outpacing losses taken by U.S stocks across the board. It closed with a 6.7-percent loss.


The Dow Jones industrial average and S&P’s 500 index have both fallen 1.3 percent on the day, while the Nasdaq, which hosts Facebook shares, is down 2.1 percent.

Facebook suspended Cambridge Analytica on Friday, claiming the firm did not delete the unauthorized data despite demands from the social media company.

The New York Times reported that Cambridge Analytica used the data to craft strategies for reaching and mobilizing potential Trump voters. Special counsel Robert MuellerRobert (Bob) MuellerWhy a special counsel is guaranteed if Biden chooses Yates, Cuomo or Jones as AG Barr taps attorney investigating Russia probe origins as special counsel CNN's Toobin warns McCabe is in 'perilous condition' with emboldened Trump MORE has reportedly requested all emails between the firm and the Trump campaign.

The report ignited a new wave of political criticism of Facebook, already under scrutiny for its sales of political ads to Russian groups aiming to sway the 2016 election.

Several lawmakers called on Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergHillicon Valley: Biden administration sanctions Russia for SolarWinds hack, election interference Instagram sparks new concerns over 'kidfluencer' culture Mark Zuckerberg, meet Jean-Jacques Rousseau? MORE to testify before Congress, and Massachusetts Attorney General Maura Healey (D) said she would open a probe into Facebook and Cambridge Analytica.

Facebook's losses come amid a volatile 2018 for U.S. stocks. President Trump's announced tariffs on steel and aluminum have triggered fears on Wall Street of an impending trade war. Traders are also bracing for a series of interest rate increases from the Federal Reserve, which tend to temper investing.

Updated at 4:13 p.m.