*By Michael Teich* Facebook may have impressed Wall Street with strong advertising revenue and user growth, but the social media company has not yet escaped from the Cambridge Analytica data privacy scandal unscathed, said Scott Devitt, an analyst at Stifel. Shares of Facebook surged Thursday, a day after the company reported first-quarter advertising revenue grew 50 percent compared with a year ago. The news eased investors’ fears that advertisers would flee the platform after a backlash from users ー and Congress ー about the security of their personal information. In its earnings call on Wednesday, the company also addressed Europe's new General Data Protection Regulation, warning the new privacy requirements could flatten or reduce the number of active users in Europe when they go into effect May 25. Devitt said in an interview with Cheddar that he doesn’t see this being a major burden for Facebook, adding that the new rules may only have a minor effect on the number of users abroad. “The bigger question is fatigue with the platform,” said Devitt, who has a “hold” rating and $175 price target on Facebook stock. Facebook saw its first-ever decline in users in the U.S. and Canada in the last quarter of 2017, but it got back on track in the first quarter of this year ー it reported 185 million users, up from 184 million last year. Devitt said the revival is a promising sign. For the full interview, [click here](https://cheddar.com/videos/what-data-scandal-facebook-stock-jumps-on-earnings-beat).

Share:
More In Business
Poll: More Americans think companies benefit from legal immigration
A new poll finds U.S. adults are more likely than they were a year ago to think immigrants in the country legally benefit the economy. That comes as President Donald Trump's administration imposes new restrictions targeting legal pathways into the country. The Associated Press-NORC Center for Public Affairs Research survey finds Americans are more likely than they were in March 2024 to say it’s a “major benefit” that people who come to the U.S. legally contribute to the economy and help American companies get the expertise of skilled workers. At the same time, perceptions of illegal immigration haven’t shifted meaningfully. Americans still see fewer benefits from people who come to the U.S. illegally.
Tylenol maker rebounds a day after unfounded claims about its safety
Shares of Tylenol maker Kenvue are bouncing back sharply before the opening bell a day after President Donald Trump promoted unproven and in some cases discredited ties between Tylenol, vaccines and autism. Trump told pregnant women not to use the painkiller around a dozen times during the White House news conference Monday. The drugmaker tumbled 7.5%. Shares have regained most of those losses early Tuesday in premarket trading.
Load More