1. Facebook in crisis
Of all the news crises Facebook has faced during the past year, the Cambridge Analytica scandal is playing out to be the worst and most damaging.
Why it matters: It's not that the reports reveal anything particularly new about how Facebook's back end works — developers have understood the vulnerabilities of Facebook's interface for years — but stakeholders crucial to the company's success seem less willing to listen to its side of the story this time.
The latest: The saga, which has been flooding cable news for days, intensified Monday night when the New York Times reported that the company's chief information security officer, Alex Stamos, is leaving the company after clashing with colleagues on how to handle disclosures of Russian activity on Facebook.
Two noteworthy occurrences from yesterday that make this scandal stand out from others:
- Facebook shares fell nearly 7% by market close on Monday. Its stock hasn't seen this type of a drop in response to any of the major scandals its faced over the past year. Even during the Russia hearings on Capitol Hill, Facebook stock hit record highs.
- Republicans were unusually swift to call for action. GOP Sen. John Kennedy and Democratic Sen. Amy Klobuchar sent a letter to Senate Judiciary Committee Chairman Chuck Grassley calling on Facebook CEO Mark Zuckerberg to testify before Congress. Republican Sen. John Thune said he'd send questions to Facebook.
The company responded with a rapid-fire defense with executive-penned blog posts and tweet storms — and sent out executives to let everyone know it was outraged. It even amended a blog post with a time-stamped update, something you would typically see on a breaking story from a news outlet.
Tick tock... It's worth noting that key Facebook execs, like CEO Mark Zuckerberg, COO Sheryl Sandberg and Chief Privacy Officer Erin Egan, have yet to comment.
Go deeper: Facebook previously played a "we didn't know this was happening" card