Who Is Feeling the Biggest Burn From Facebook?
Facebook Inc. (NASDAQ: FB) has been the subject of much scrutiny recently following concerns about its privacy practices and how it handles user data. However, the company that seems to be getting the worst deal from this is Acxiom Corp. (NASDAQ: ACXM), shares of which were slaughtered on Thursday.
The concerns with Facebook surrounding Cambridge Analytica have grown to the point where the U.S. Federal Trade Commission (FTC) is investigating the social media giant. There have even been allegations that Facebook secretly logs its users’ call data.
CEO Mark Zuckerberg plans to improve the protection of user data, but this might not be enough.
For starters, Facebook is cutting ties with brokers that use its data to target certain people. According to Reuters:
Facebook Inc said on Wednesday it would end its partnerships with several large data brokers who help advertisers target people on the social network, a step that follows a scandal over how Facebook handles personal information.
The world’s largest social media company is under pressure to improve its handling of data after disclosing that information about 50 million Facebook users wrongly ended up in the hands of political consultancy Cambridge Analytica.
Early Thursday morning, Acxiom announced it was informed by Facebook that Facebook Partner Categories will be discontinued over the next several months. Facebook Partner Categories provides audience targeting options by leveraging third-party data providers, including Acxiom’s Audience Solutions division.
Shares of Facebook recently traded up 2.5% at $156.85, with a 52-week trading range of $138.81 to $195.32 and a consensus analyst price target of $221.74.
Acxiom shares were last seen down 32% at $19.03, with a consensus price target of $36.25 and a 52-week range of $18.80 to $32.93.