> First, we will investigate all apps that had access to large amounts of information before we changed our platform to dramatically reduce data access in 2014, and we will conduct a full audit of any app with suspicious activity.
I am skeptical of Facebook's ability "guarantee" that a third party developer has not cached any data. I would equate this to finding all N needles in a haystack of size M where M >> N; it's just not a feasible task to complete. Even if you find N-1 needles, the last needle can be used as a sort of "mold" to reproduce all N-1 needles. My "golden rule" for the internet is: Once you give up information, assume it's everywhere and impossible to rescind.
I believe this statement will be eaten up by the press, and Facebook will continue to carry on its operations as if nothing happened. The stock will probably recover, and we'll go back to square one. Give it a few weeks.
The true demise of Facebook requires several things to happen simultaneously; a resonance of perfect conditions, so to speak. You've probably heard that Einstein and Newton discovered their theories because "they were decently smart men in the right place at the right time". A similar effect is also true here. If we want to see Facebook's demise, the world must have a suitable alternative in place, one which already has a critical mass. Until then, Facebook has a monopoly on attention and they will keep it as long as they are producing enough positive externality.