Bank of America says Facebook is no longer one of its favorite stocks in wake of data scandal

Bank of America(BAC) Merrill Lynch is bullish on Facebook(FB).

The company reiterated its buy rating on Internet companies, but rated it as US1’s best list of ideas. The bank did not provide detailed information on the removal.

“Facebook (FB) is being removed because we are adjusting based on the overall composition of the list,” the company’s research team wrote on Tuesday.

After the report was released, the company’s stock price rose by 0.5% on Tuesday.

Bank of America Merrill Lynch cut Facebook’s price target twice within five days last month, citing the FTC’s investigation of its data practices.

Justin Post, an analyst, wrote in a March 27th customer report that the government investigated “the risk of civil penalties that would increase data privacy infringement and may take years to resolve if it has historical records”.

Mark Zuckerberg, CEO, Facebook

According to reports, Facebook, the political research firm Cambridge Analytics, has been processing its data scandal after it was able to obtain profile data from more than 50 million social media company users.

The company’s stock fell more than 11% in the past month on Tuesday at noon.

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