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How Facebook Is Hurting Video Game Stocks

Matthew Johnston

The Cambridge Analytica data-privacy scandal that saw Facebook Inc.’s ( FB) stock get hammered and put the company’s CEO and founder Mark Zuckerberg in the hot seat in front of Congress has also had some damaging repercussions for videogame publishers. Following the scandal, Facebook made changes to its Login software that apparently had had a negative effect on second-quarter performance for popular “Candy Crush” game-publisher Activision Blizzard Inc. ( ATVI), and for Zynga Inc. ( ZNGA), known for games like “Words With Friends,” according to MarketWatch. Both companies saw their stocks decline following their earnings reports.