Facebook shares rise following Zuckerberg’s testimony before congressional committees

Facebook shares rose sharply, registering its biggest-gain in nearly two years as chief executive Mark Zuckerberg answered questions from U.S. senators on how Facebook might be regulated more-closely.

According to media reports on Wednesday, Mr Zuckerberg apologised for the issues that Facebook caused, from data privacy to foreign attempts to influence U.S. elections. But he avoided any specific talk about new laws.

“I’ll have my team follow up with you so that way we can have this discussion across the different categories where I think this discussion needs to happen,” said Mr Zuckerberg.

He said this in a hearing of the U.S. Senate’s Commerce and Judiciary committees about the regulations he thought were necessary.

“Zuckerberg is conciliatory in his presentation. The stock is running up on his comments,” said Mariann Montagne, portfolio manager at Gradient Investments in Arden Hills, Minnesota.

Facebook shares closed up 4.5 per cent at 165.04 dollars, its highest level in almost three weeks. It was its biggest daily gain since April 28, 2016.

The shares fell-steeply last month after it was revealed that millions of users’ personal-information was obtained from Facebook by Cambridge Analytica, a political-consultancy that used the information in Donald Trump’s presidential campaign in 2016.

The latest estimate of affected users is up to 87 million.

(Reuters/NAN)