NEW YORK (TheStreet) -- Shares of Facebook (FB) - Get Report were rising in early morning trading on Tuesday despite the fact that a German privacy regulator mandated that the company stop gathering and keeping data from WhatsApp messaging app users in the country.
The Hamburg Commissioner for Data Protection and Freedom of Information also ordered Menlo Park, CA-based Facebook to delete any information it has already collected from the app, according to the commissioner's statement.
Facebook purchased messaging app WhatsApp for $19 billion in cash and stock two years ago. The company has since "publicly assured" that data would not be shared between the two entities, privacy regulators noted.
The social media site is breaking data protection law in Germany and has not gotten the proper approval from the app's users, the regulator said.
WhatsApp has 35 million users in Germany, Reuters notes.
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Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of A-.
The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, impressive record of earnings per share growth, compelling growth in net income and expanding profit margins. We feel its strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value.
You can view the full analysis from the report here: FB