Facebook’s dynamic advertising business is facing an increased threat of government regulation amid a Russian ad scandal that has spiraled out of control, but you wouldn’t know that by looking at its stock performance. Shares of Facebook Inc. were trading at a near-record high of $174.30 this morning, despite numerous media reports over the last three days suggesting that Russia-linked ads reached farther and wider than Facebook initially let on. On Friday, Fast Company‘s Alex Pasternack reported that the Kremlin-backed propaganda campaign also infiltrated Facebook-owned Instagram. On Saturday, BuzzFeed ran a story with the ominous headline “Facebook’s DC Nightmare Is Just Beginning,” noting that two senators are considering legislation that would force social networks to publicly disclose political ad spending.
That nightmare has yet to reach Wall Street, though. Facebook shares did take a small hit in late September, but they’ve already bounced back, and the stock has grown more than 5% since the company’s most recent earnings report.