The stock price of Facebook Inc (FB) has gone up by over 1.30% today till the late morning trading session. The stock closed at $127.54 on Monday.
The California based company is an American for-profit corporation and online social media and social networking service. The Facebook website was launched on February 4, 2004, by Mark Zuckerberg, along with fellow Harvard College students and roommates, Eduardo Saverin, Andrew McCollum, Dustin Moskovitz, and Chris Hughes.
The founders had initially limited the website’s membership to Harvard students; however, later they expanded it to higher education institutions in the Boston area, the Ivy League schools, and Stanford University. Facebook gradually added support for students at various other universities, and eventually to high school students as well. Since 2006, anyone age 13 and older has been allowed to become a registered user of Facebook, though variations exist in the minimum age requirement, depending on applicable local laws. The Facebook name comes from the face book directories often given to United States university students.
Meanwhile, Facebook has signed up for the EU Privacy shield data treaty recently. This is raising the issue of a privacy breach, as personal information of users can be transferred to the US. This recent development has caught the attention of many privacy campaigners and protesters, as Facebook fails to keep its signatures discreet. Not everybody lost though, as the treaty will provide extra safety to Europeans starting from July. The treaty received the green light from Alphabet and Microsoft earlier, while Facebook signed up for it by the end of September this year.
Luckily for prudent users, this treaty only applies in two areas of the social networking site. First is the Workplace which was launched a week ago for co-workers in different companies to communicate with one another. The second area is ‘Ads and Measurement’, which uses the data of customers given by other businesses to target advertisements. The other data is safe, at least for now, as it can later be transferred under secondary measures legally. The treaty had to be signed by Facebook due to the previous US-EU agreement made by the court of the region, which declared in October last year that the treaty was old and invalid, which in turn made US surveillance to threaten tech giants such as Alphabet and Facebook to move data abroad.
Our analysts have given a “BUY” rating to Facebook’s stock. Today’s rise indicates a positive response from the market, and is expected to continue on the same path.