Zuckerberg Testimony Doesn't Change Our View on Facebook
Although new regulations are possible, we think shares of the wide-moat firm are undervalued.
Ali Mogharabi: CEO and co-founder of Facebook Mark Zuckerberg testified in front of Congress yesterday and answered questions about the latest data breach issue that involved Cambridge Analytica.
While this recent development may have brought forth further doubts regarding Facebook and its user growth and engagement, along with more demand for a GDPR-type of regulation in the U.S., we're still confident that the firm is more likely to endure the short-term impact of the data breach issue and at this point don't expect a significant long-term negative effect on Facebook's platform and operations. We are sticking with our wide-moat rating and $198 fair value estimate for Facebook.
Ali Mogharabi does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.