Facebook’s share price jumped over 4 percent on Tuesday following Zuckerberg’s testimony to Congress regarding the company’s privacy practices.
Shares of Facebook (NASDAQ:FB) jumped more than 4 percent on Tuesday (April 10) after Facebook CEO Mark Zuckerberg gave his testimony to Congress, addressing the company’s privacy practises.
The stock was trading at $165.40 at market close, its highest level in two weeks. The company’s trading low for the day was $157.01, while its day high was $165.98.
The senators questioned Zuckerberg on the limits of privacy, Cambridge Analytica, Russian meddling in the elections, Facebook being a monopoly and new regulations that could be introduced to protect users’ privacy.
Some of the highlights of Zuckerberg’s testimony include a conversation between Senator Richard J. Durbin and Zuckerberg.
Durbin asked Zuckerberg whether he would be comfortable sharing the name of the hotel he stayed in last night or if he would be comfortable sharing the names of people he messaged this week.
“No. I would probably not choose to do that publicly here,” Zuckerberg told Durbin.
“I think that may be what this is all about,” Durbin said. “Your right to privacy. The limits of your right to privacy. And how much you give away in modern America in the name of, quote, connecting people around the world.”
On one of the questions by a senator on whether Zuckerberg thought it was best for an opt-in or an opt-out feature on user data, Zuckerberg said there is already a system in place. “We do require permission to use the system and to use information. We don’t sell information,” he said.
Zuckerberg also said that his team would work with the senators on a proposed new law to protect users’ privacy information in the US.
Meanwhile, Senator John Kennedy was more blunt about his opinions on Facebook. “Your user agreement sucks,” Kennedy said.
According to TipRanks, KeyBanc analyst Andy Hargreaves is maintaining a “buy” rating on Facebook and has set a price target of $245.
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Securities Disclosure: I, Bala Yogesh, hold no direct investment interest in any company mentioned in this article.