Facebook stock fell sharply Monday as the social media company takes fire for the use of its data by the outside firm Cambridge Analytica, which obtained private information for about 50 million Facebook users.
Cambridge Analytica then used the data to try to help President Trump’s 2016 presidential campaign, according to an investigative report published Saturday by The New York Times.
Shares in Facebook fell as much as 7.5 percent Monday to $170, far outpacing losses taken by U.S stocks across the board. It closed with a 6.7-percent loss.
The Dow Jones industrial average and S&P’s 500 index have both fallen 1.3 percent on the day, while the Nasdaq, which hosts Facebook shares, is down 2.1 percent.
Facebook suspended Cambridge Analytica on Friday, claiming the firm did not delete the unauthorized data despite demands from the social media company.
The New York Times reported that Cambridge Analytica used the data to craft strategies for reaching and mobilizing potential Trump voters. Special counsel Robert Mueller has reportedly requested all emails between the firm and the Trump campaign.
The report ignited a new wave of political criticism of Facebook, already under scrutiny for its sales of political ads to Russian groups aiming to sway the 2016 election.
Several lawmakers called on Facebook CEO Mark Zuckerberg to testify before Congress, and Massachusetts Attorney General Maura Healey (D) said she would open a probe into Facebook and Cambridge Analytica.
Facebook’s losses come amid a volatile 2018 for U.S. stocks. President Trump’s announced tariffs on steel and aluminum have triggered fears on Wall Street of an impending trade war. Traders are also bracing for a series of interest rate increases from the Federal Reserve, which tend to temper investing.
Updated at 4:13 p.m.