Facebook Set Aside $3 Billion For A Penalty. Then It Grew By $40 Billion (BuzzFeedNews).
Facebook is setting aside $3 billion to cover the expected costs, including an anticipated fine, related to an ongoing investigation with the Federal Trade Commission over its privacy practices, the company said today. The expenses could go as high as $5 billion, Facebook said.
The figure may sound massive, but Wall Street is giddy. In after-hours trading on Wednesday, Facebook’s stock price shot up more than 8%, signaling that investors consider the estimated fine to be a slap on the wrist that could’ve been far worse.