Why Facebook’s Data Breach Worries Investors

Facebook (FB) disclosed on September 28 that an attack on its computer system exposed the personal information of as many as 50 million people who use its flagship social network, which hosts over 2.2 billion accounts. The attack was the worst in Facebook’s 14-year history, and the company’s founder and chief executive, Mark Zuckerberg, described it as a very serious issue. Facebook fell nearly 3.0% the day the company disclosed the data breach, highlighting investor concerns about the potential implication of the breach on the company’s business going forward.