26 July 2018 the market value of Facebook has dropped to $ 120 billion after the statement by Mark Zuckerberg that the social network has problems with privacy, reports Cult of Mac.
Capitalization Facebook has decreased by 19% due to a change in investors ‘ expectations. They fear that the administration of the social network will soon face a number of lawsuits and difficult questions from the authorities. It is not excluded that after the proceedings, Facebook will have to pay fairly substantial fines.
The business model of Facebook collects personal data about users and selling them to advertisers. In fact, users of social networks are becoming a commodity and not a customer service. This is due to several scandals that occurred in the spring of 2018.
In the evening of 26 July, 2018 mark Zuckerberg addressed investors. He said that to continue to work on existing algorithms is becoming increasingly difficult, and said:
“I’ll tell you that we will continue to actively invest in security and privacy. We have a responsibility to keep people safe. But, as I said at the previous meeting, a large investment in safety, will significantly affect our profitability”.
Experts expect that after the decline in share prices, reduced the income of the service. This trend will continue until the end of 2018.
Until 26 July 2018 mark Zuckerberg was considered the fifth richest man in the United States. However, now is at the 11th place, losing 15 billion of personal wealth.
Why this will never happen with Apple
Tim cook and other Apple representatives repeatedly expressed discontent with the policies that Facebook holds in respect of its users. The head of the Corporation believes that social networks like Facebook, should not even exist. And Steve Wozniak and even removed the page on the service.
Apple constantly claims that confidentiality and privacy are among the most important values of the company. The iPhone maker could easily collect data on all their users. Instead, he developed an algorithm for differential privacy that allows you to perform General trends in the use of the devices, but does not provide information about the final consumer.
Similar problems with the collection of customer data are observed and Google. Perhaps the reduction of capitalization of Facebook will affect the search giant, but just not for Apple. If the value of the Corporation from Cupertino once and will be less, it will happen for quite another reason.