Facebook (FB) Aftermath: How to Protect Against a King-Sized Explosion
We can thank Facebook (FB, $168.15) for giving us a good lesson on the value of diversification in the stock market.
When Facebook's stock dropped 6.8% on Monday, March 19, following news that information on more than 50 million users was accessed without the social platform's consent, the investing public let out an audible gasp. After all, Facebook and other tech and social media giants make their money on collecting and using user data - your data. If they cannot keep it safe, then users may no longer give it to them.
This isn't the same kind of breach as the one that rocked credit) last year. In fact, Facebook claims it wasn't technically a "breach" at all, but that hardly makes it any better - and in fact, the idea that this was just so close to the normal run of business may be even worse. Breach or not, the unauthorized use of Facebook's data still took its toll on the public trust.
