Analysts are watching to see how Facebook recovers from the Cambridge Analytica scandal, a data firm that improperly accessed information from as many as.
Despite the focus on Facebook’s role in the affair, its shares have increased 23 percent since the beginning of the year, compared with a 6.5 percent rise for the Standard & Poor’s 500 index. In the final minutes of U.S. trading on Wednesday, shares hit $217.50, an increase of 32 percent in the last 12 months, before slipping after the bell.
Daniel Ives, head of technology research at GBH Insights, said in a note that investors “clearly viewed Cambridge as a ‘blip on the radar,’ although some soft spots in the advertising and overall user metrics will fuel the debate about further bumps in the road” for Facebook.MORE NEWS: Menlo Park Man Stabbed at Party
“[T]he fundamental damage to the Facebook platform has been ‘very contained’ in our opinion and is generally better than feared from the white-knuckle period a few months ago,” he added.