Facebook stock rises after FTC fine for user data leaks

After months of investigation into misuse of user data, the Federal Trade Commission announced it would fine Facebook the sum of $5 billion on Friday.

The result of the announcement, however, was an increase in the company’s value. Facebook’s stock hit its highest price in nearly a year by the end of the trading day on which the fine was announced.

With Facebook having annual profits of $22 billion to its name, the amount of the fine has been decried as a slap on the wrist after repeated privacy violations.

The rise in stock price is an indicator that shareholders are pleased with how little of an impact the FTC ruling will have on Facebook’s business model.

None of the conditions attached to the fine will hinder Facebook from collecting and sharing user data to benefit its advertising business.