Facebook shares drop 4.4 percent following Cambridge Analytica debacle

Facebook has been at the center of a hectic debate about Cambridge Analytica and the company’s improper use of Facebook data. As a result, Facebook shares (NASDAQ:FB) opened at $177.01, down 4.4 percent compared to Friday’s closing price of $185.09.

Share prices are still going down after the opening bell. NASDAQ as a whole is more or less flat — the stock market opened down 0.1 percent. It’s worth noting that Facebook shares have been doing well recently:

On Thursday, Facebook suspended Cambridge Analytica from its platform. The political data analytics used Facebook data to help Donald Trump’s presidential campaign.

The main issue is that the company developed an app called an app called “thisisyourdigitallife” to harvest user data. While many people thought they were downloading a fairly harmless personality quiz app, Cambridge Analytica was using Facebook’s API to gather data about the users of this app, but also the friends of the users.

While Facebook shut down the API that gave friends’ data to apps last year, it’s already too late. Developers have improperly used Facebook’s API to influence elections.

That’s why many people think regulation on tech companies is now inevitable, which could hurt Facebook’s bottom line.