Facebook shares post biggest daily gain in 2 years

By Ovunc Kutlu

NEW YORK

Facebook shares posted their biggest daily percentage jump in two years Tuesday, gaining 4.5 percent after co-founder and CEO Mark Zuckerberg testified before Senate committees.

The social media network saw its stock price hit an all-time highest level of $195.32 per share on Feb. but has since fallen sharply, especially since reports in mid-March suggesting the biggest data leak in the company's history.

Between Feb. 1 and last Friday, Facebook shares dropped 18.6 percent, while the firm's market capitalization fell to $454 billion, from $558 billion, marking a $104 billion loss in market value, according to data compiled by Anadolu Agency.

After shares closed Monday at $157.93, it climbed to as much as $165.94 after Zuckerberg began his testimony at 1520 EST (1920 GMT) and closed Tuesday at $164.04.

Facebook's share value soared 4.5 percent on Tuesday, the biggest percentage daily gain in stock value since April 28, when shares jumped 7.2 percent after the company's earnings beat market expectations.

In Tuesday's closing, Facebook's market capitalization rose to $477 billion. Zuckerberg saw his net worth gain by $2.8 billion, or 4.4 percent, to $66 billion from the previous day, according to Forbes magazine’s World's Billionaires real-time ranking.

Experts said Zuckerberg did a successful job in admitting mistakes over Facebook failing to prevent 87 million of its users' private information being used without their consent by U.K.-based Cambridge Analytica during British and American political campaigns.

At a Senate hearing, the CEO also provided detailed information on how to prevent future data leaks, leading investors to regain confidence in Facebook, analysts said.

Zuckerberg will face the U.S. House of Representatives on Wednesday at 1000 EST (1600GMT).