When a major company such as Facebook Inc. (NASDAQ:FB) is caught in a scandal, the declining share price doesn’t just hurt investors who knowingly bought shares of the company. It also hurts all those unsuspecting shareholders who may own part of the company through different Exchange Traded Funds.
On March 16th, shares of Facebook were trading at $185.09. The news broke that 50 million customers had their data taken from Facebook by a company called Cambridge Analytica and used to persuade American’s to vote for President Donald Trump. By March 27th Facebook shares had bottomed out at $152, a nearly 18% decline from the day before the story broke. As of this writing, shares of the social media giant have recovered a little, and now they trade at $160 per share, still a 13.5% decline.
Anyone that knowingly owned shares of Facebook before this story breaking has decided to either ride this rough patch out or jumped ship. But, some investors own shares of Facebook and have likely taken a beating because of the situation and may not even have known what was causing their portfolios to fall. Continue reading "Facebook's Decline Has Hurt These ETFs"