Shares of social media giant Facebook, Inc. (NASDAQ:FB) rallied on Wednesday following a rough two days in the market to start this week on privacy concerns surrounding Facebook's data-sharing policies. The majority of the concern displayed by the market has stemmed from reports that Cambridge Analytica, a U.S. data mining firm headquartered in the U.K., had improperly accessed the personal data of approximately 50 million American Facebook users in a bid to assist the Trump campaign in their eventual Presidential victory.
The concerns surrounding how well companies such as Facebook protect the personal information of their users is a discussion which was been ongoing for the better part of the past decade. Financial markets have also been in flux in recent days, as traders wait for an indication of whether the U.S. Fed intends to raise rates as expected, or hold off for some period of time.
Despite the recent volatility in Facebook's share price, the tech company remains very attractively valued, with a price earnings to growth (PEG) ratio of 0.85 and a forward price to earnings ratio of less than 20. This recent dip has provided many long-term bulls with another buying opportunity, while also providing pause for those who may be looking to take some profit off of the table and wait to see how this whole situation plays out.
Overall, the proactive manner in which Facebook is dealing with many of the concerns which investors have priced into the company's share price appears to have sufficiently minimized medium-term downside, although near-term risk remains. As a long-term play, Facebook should be a top pick for any tech-oriented investor.
Invest wisely, my friends.
