Facebook tumbled 7.3 percent Wednesday following a spate of bad news, including revelations that it shared more user data than previously thought and a lawsuit from the Washington, D.C., attorney general.
The drop is the second-steepest this year for Facebook, following a 19 percent drop on July 26 after an earnings report warning of slowing sales. Before Wednesday's Federal Reserve meeting, Facebook had been the only major tech stock in the negative. By the end of the day, it suffered the worst fall among its peers as the Nasdaq Composite Index closed down 2.17 percent.
On Tuesday night, the New York Times published a story alleging Facebook shared unprecedented amounts of data with partners, based on internal documents from Facebook and interviews with more than 50 former employees. The report says Facebook even allowed some companies, like Spotify, Bing and the Royal Bank of Canada to access user's private messages. It says some companies were allowed to view certain information from users' Facebook friends without explicit consent.