Zuckerberg gets richer after his testimony to Congress in data scandal
WASHINGTON: Facebook CEO Mark Zuckerberg, after facing 10 hours of hard-hitting questions from the Congress, has finally made a comeback. The tech company’s market value is raised by 5% after facing a drop in the market value of $80 billion.
Mark Zuckerberg was in the line of fire for over two days from nearly 100 senators and emerged unscathed as he gave a commendable performance, clearly well coached, helped him outperform expectations which were admittedly low.
Facebook’s share price rose by more than 5% on the first day of Zuckerberg’s testimony boosting the tech company’s market value by more than $24 billion.
Since the data privacy scandal relating to Cambridge Analytica the company had suffered great losses and while the company has not yet regained these losses, the turnaround suggests traders are less worried about the heavy-handed regulation of tech companies than they were before.
The Facebook founder was grilled with basic queries about the company’s business model to everything about data privacy, political ads, censorship, and the works.
What made matters really interesting in the 10 hours long question-answer session is that how the senators in question often portrayed a lack of understanding about how Facebook really works and many openly acknowledged that they need the company’s help and support in writing regulations that cover its industry.
Zuckerberg handled every question extremely well as he expertly dodged the complicated or revealing questions by a “my team will get back to you on this” line. Many channels reported that the CEO used this line for at least 50 times.
Meanwhile, Facebook still has the support of the ever-optimistic brokers who follow the company.
More than 90% of all broker recommendations are still a “buy,” according to FactSet.