Facebook Is in the Crosshairs of the Latest Data Scandal

Facebook, the platform we all know and love is in the news for being skimmed for information relating back to a data firm. People take for granted that their information is safe and secure, when in reality it may be easier to obtain then you thought. The stock has taken a tumble and Mark Zuckerberg is scheduled to testify on the issue. Shareholders should be little surprised that this occurred given the amount of information littered throughout the Facebook website.

Published over a year ago
View all stories for Meta Platforms | View All Stories
Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.

Reviewed by Vlad Skutelnik

Now, does that mean this is acceptable, absolutely not. Facebook and others have a responsibility to keep information safe, no matter what it is. Advertisers want the information Facebook has and in reality, the amount of info the company has is scary. However, the reason they have this information is because we allow them too.

Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Meta Platforms income statement, its balance sheet, and the statement of cash flows. Potential Meta Platforms investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Meta Platforms investors may use each financial statement separately, they are all related. The changes in Meta Platforms's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Meta Platforms's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.
The goal of Meta Platforms fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Meta Platforms performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Meta Platforms shares is the value that is considered the true value of the share. If the intrinsic value of Meta is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Meta Platforms. Please read more on our fundamental analysis page.

How important is Meta Platforms's Liquidity

Meta Platforms financial leverage refers to using borrowed capital as a funding source to finance Meta Platforms ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Meta Platforms financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Meta Platforms' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Meta Platforms' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between Meta Platforms's total debt and its cash.

Breaking down Meta Platforms Further

Shareholders need to be aware of the magnitude this could have been. Luckily the information that was skimmed is not world stopping, but it could be a scare that will lead to adjustments. The leader of this organization needs to be aware that if users feel they are not being treated right and exploited for sellable information, it will quickly crumble the giant.  

Under Armour was also in the same boat recently with the mobile app, My Fitness Pal being compromised, exposing passwords, names, and other sensitive information.  

Going forward, investors and potential investors need to keep an eye on quarterly reports. This is where the company will publically address the issue in detail for investors. You can get a tone for how the company feels and compare that against their actions. From there, you can begin to closely examine the financials and ensure the company is still sound.  

Be aware also of other large data breaches and understand how others are reacting. Facebook has many layers about them and something such as this could jeopardize the whole company. Trust is something that is difficult to earn back in the business world. The stock has taken a huge hit and this could either be value for investors, or a sign of what is to come.

Building efficient market-beating portfolios requires time, education, and a lot of computing power!

The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.

Try AI Portfolio Architect

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Meta Platforms. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com