Facebook Inc. (NASDAQ: FB) shares opened higher on Thursday morning after CEO Mark Zuckerberg told reporters that the data scandal had no meaningful impact and that he has not seen noticeable changes in user behavior.
"I don't think there has been any meaningful impact we've observed," Zuckerberg said, when asked if the tech giant has seen a change in the behavior of users or buying pattern of advertisers, according to CNBC reporters.
Facebook was affected by a massive data scandal, where 87 million users information were improperly shared with Cambridge Analytica. The scandal raised many concerns among users, saying that Facebook failed to protect their privacy.
Zuckerberg’s reassurance seemed to quell users and investors worries, as shares rose by 3.8 percent after the opening bell on Thursday.
"Zuckerberg's comments to reporters Wednesday afternoon suggesting it has not seen any meaningful user or advertiser impact, and his tone with reporters, suggest to us that the worst is likely behind [Facebook]," Deutsche Bank said.
Facebook released a statement regarding privacy issue updates on Wednesday. The company said its application platform will need to approve all apps that request access to information such as check-ins, likes, photos, posts and others. Facebook says it will tighten the review process by no longer allowing apps to ask for personal information such as religious or political views, relationship status, friends and other miscellaneous information.
The company has also made changes to its event, group, pages and Instagram API to offer more protection as well.
Starting April 9, Facebook will show users a link at the top of their News Feed so they can see what apps they use and the information that users have shared with those apps. People will also be able to remove apps they no longer want.
Facebook says as a part of the process, the company will tell users if their information had been improperly shared with Cambridge Analytica.
"Even if we can't really measure a change and the usage of a product, or the business or anything like that, it still speaks to people feeling like this is a massive breach of trust and that we have a lot of work to do to repair that." said Zuckerberg.