Zuckerberg clearly admitted to mistakes and took responsibility. He also said that the firm will be increasing resources to investigate apps and take appropriate actions. Facebook will be using AI technology to identify questionable activities and content posted. The firm also plans to assign around 20,000 people to work on security and content.

Zuckerberg also appeared willing to work with lawmakers on possible regulations, which we think may actually create a barrier to entry in the social network space and help Facebook maintain its market leadership.

Overall, the testimony didn't really change our view and valuation on the company. We're still rating Facebook as a wide-moat and valuing it at $198 per share.