The Facebook co-founder and CEO Mark Zuckerberg lost $4.9 billion in wealth due to the scandal surrounding Facebook and the data mining firm Cambridge Analytical. On Monday his shares tumbled more than 6% in one of its worst days since 2012. The plunge continued Tuesday, with investors sending Facebook shares down another 2.6% to close at $168.15, which translated into another $1.8 billion loss for Zuckerberg.
The social network giant likely avoided millions of dollars more in losses by selling more than 7.3 million in Facebook shares since September of 2017, Securities and Exchange Commission filings show. The sales are designed to fund philanthropic goals in education, science and advocacy for Zuckerberg and his wife, Priscilla Chan, the filings show.
The company suspended Cambridge Analytica for the transmission of the data which Facebook says is a violation of its rules.
The scandal has raised serious privacy concerns among its users and fears among investors that Facebook could be facing an increase in regulatory scrutiny.
One way or the other this scandal is being tied to President Trump’s Ad campaign..