Facebook, Inc. (NASDAQ:FB) has seen its stock price take a hit as the company has been rocked by another scandal. Last year, Facebook was involved in a fake ad scandal where it was found that the social media platform was used by Russians to try and manipulate users and influence voters ahead of the presidential election in 2016. The social media site has since pledged to do a better job of weeding out fake news and it was able to recover from the scandal as it would go on to reach a new all-time high of $195.
Unfortunately, the stock is back in the news as it is alleged that Cambridge Analytica, a political data mining firm, accessed 50 million user accounts on Facebook and improperly used sensitive information to influence voters during the 2016 election. The company had been hired by Donald Trump.
The results haven’t been good for Facebook as the share price has declined 13% in the past month, and more of a sell-off could be on the way. It’s a public relations nightmare for a company that is still recovering from its previous scandal as it is still trying to prove to its users that it can be trusted.
As bad as this all may sound, it might be a good opportunity for opportunistic investors to secure a low price for the popular tech stock. While a scandal might not be a popular time to buy a troubled stock, it could be advantageous to do so. There’s no danger that Facebook is going to go anywhere anytime soon, and with a vast user base, it still presents a lot of opportunity for revenue and profit growth.
