After closing yesterday trading at $268.09, approximately 2.06% down, Facebook (FB) stock has dropped over 5% since the beginning of the week. The company has gone to the Ireland High Court to appeal a move to curb EU-US data transfer.
Facebook Inc (NASDAQ: FB) stock continues experiencing a strong downward pull amid overall stock sell-off. The shares closed Thursday market trading at $268.09, approximately 2% down. However, they had regained some of the losses in the pre-market as they were 0.68% up. At the time of writing, the stock is 0.25% down, at $267.41.
FB stock has been on the winning side for the better part of the first half despite the ongoing coronavirus pandemic. Being a company with several tech products that are actively being used by a lot of people globally, the company has enjoyed a sort of cushion from the crisis. According to figures provided by a media outlet MarketWatch, Facebook stock has gained 30% year to date through Thursday, managed to add approximately 17.28% in the past three months, and jumped around 2% in the last one month.
The upward fuel seems to be running out as the company faces challenges with its advertising policies as the United States approaches the presidential election. In addition, the company has been fighting global regulators due to data protection of its customers with fears of the United States spying through the company. However, with a $763.74 billion market capitalization as of the time of publication, Facebook is capable of growing through the crisis and emerging much stronger than before. With such a huge cash balance, the company is capable of doing strategic acquisitions to help it increase its revenue collection.
FB Stock in the Near Future
Facebook stock in the near future remains held by tight fundamentals that the company’s management must look at immediately to ensure investors remain confident.
Being a huge tech company operating one of the most used social media platforms in Europe, EU regulators have been colliding with the social media company over user data protection. Currently, Facebook is appealing a preliminary order by Ireland’s privacy regulator to suspend its data transfers from Europe to the United States. The company filed the case against Ireland’s Data Protection Commission before Ireland’s High Court yesterday.
“While some transfers may be difficult to justify in light of the concerns raised” by EU judges, “all EU-US data transfers should not be tarred with the same brush,” said Wim Nauwelaerts, a data protection lawyer with Alston & Bird in Brussels.
He continued:
“I don’t believe that there’s a silver bullet, but it would be helpful if the European regulators could provide practical guidance on how companies should go about analyzing the laws of non-EU countries.”
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