Facebook Inc’s shares slid more than 4 percent in premarket trading after media outlets reported a political consultancy firm gained inappropriate access to data on 50 million users, according to a Reuters report.
The firm, Cambridge Analytica, reportedly had ties to President Donald Trump’s political campaign.
According to Reuters, one Wall Street analyst said the reports could indicate ‘systemic problems’ with Facebook’s business model. A number of analysts speculated the news could cause more scrutiny of the social media platform.
The slide knocks $23.8 billion of the social network’s value of $538 billion.