Investing.com - Facebook slipped on Wednesday, keeping a lid on gains in tech as the Washington, D.C. attorney general reportedly sued the social media company over alleged privacy violations from the Cambridge Analytica scandal.
Facebook (NASDAQ:FB) fell more 3% after the Washington Post, citing people familiar with the matter, said Karl Racine, attorney general for the District of Columbia, filed a claim against the company for farming out its users' data to Cambridge Analytica.
In the midst of the scandal, Facebook CEO Mark Zuckerberg laid out measures to bolster the social media platform's defenses, but that has done little to stop calls for increased regulatory oversight.
The latest blow to Facebook comes a day after reports the social media company had given corporate partners, including Netflix, Amazon and Microsoft, wider access to data on its platform than many had thought.
Netflix (NASDAQ:NFLX) said, however, that it "never asked for, or accessed, anyone’s private messages." Its shares rose 3%.
Elsewhere in FAANG, Apple (NASDAQ:AAPL) gave up most of its gains after Jefferies became the latest Wall Street firm to express caution over iPhone sales.
Jefferies lowered estimates for iPhone revenue by 3% and for Apple’s profit by 4% on expectations for weaker iPhone sales.
The Wall Street firm expects Apple to sell about 72 million iPhones in the first quarter next year and 206 million iPhones over the full year, below consensus estimates for iPhones sales of 74 million and 210 million, respectively.