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25 April 2019 By Gina Chon Follow @GinaChon

The social network’s market value surged as much as $40 bln after first-quarter earnings despite a likely U.S. data-privacy fine of up to $5 bln. Mark Zuckerberg’s giant can easily absorb multiple hits that size and, just like banks after the financial crisis, move on.

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Facebook’s first-quarter expenses included an accrued cost of $3 billion in relation to a U.S. Federal Trade Commission inquiry into its data practices, the company said on April 24. Facebook estimated the range of the loss could be between $3 billion and $5 billion, though that could be on the lower end of projections, officials said.

The government is investigating whether Facebook inappropriately shared information on 87 million users with British political-consulting firm Cambridge Analytica, which is no longer in business. The move could have violated a 2011 consent-decree agreement with the FTC to protect user data and privacy.

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