By Alec Borkowski
July 26th, 2018 was a day that Mark Zuckerberg would like to forget. On that fateful Thursday, Facebook released their earnings report after the market had closed for the day. Facebook’s stock was down 19% just over the course of the day. This drastic drop accumulated to a loss of over $120 Billion in value for the company. Investors essentially lost their entire earnings from 2018 within a single day of trading. No other company in the history of the free market system has ever experienced a loss of this magnitude. Now the question is why did this happen? Now this question is complex in nature in the sense that, at the time, it was impossible for Facebook to stop this. It was not due to internal problems or leadership issues but rather an unprecedented misuse of social media. The market lost faith in Facebook after reports of the misuse of their data had been leaked in the infamous “Facebook-Cambridge Data Scandal.” This scandal gave Cambridge Analytica, a British political consulting firm, access to millions and possibly hundreds of millions of Facebook user’s personal information. This caused Mark Zuckerberg to have to sit in front of congress and face hours of questioning. The misuse of this data caused the single most disastrous stock decline in Facebook’s history.