Published: Sat, July 28, 2018
Money | By Arnold Ball

Facebook Suffers Huge One-Day Drop in Market Value

Facebook Suffers Huge One-Day Drop in Market Value

Zuckerberg placed himself in the midst of yet another controversy after he received considerable backlash for justifying the lack of diligence Facebook demonstrated while handling offensive social media content posted by Holocaust deniers.

Mark Zuckerberg's loss of $15.8bn is equal to the total wealth of the world's 81st-richest person.

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Some see the Facebook selloff as clear evidence that nothing can grow forever, especially not the world's biggest companies, especially not at the rate of nimble, promising startups.

"Earlier this week, the company was slammed by the parents of a Sandy Hook massacre victim for the hoax claims that emerged on the platform", Fox News reported.

The new $10 million bump works out to an extra $27,000 a day Facebook is spending on protecting its chief.

At least 16 brokerages cut their price targets on Facebook after managers said the cost of improving privacy safeguards, as well as slowing usage in the biggest advertising markets, would hit the company's profit margins for more than two years.

Zuckerberg's status as one of the wealthiest men on the planet is dropping, and so is his company's worth.

It's certainly been a tough year news-wise for Facebook, which got pulverized by the stock market this week in the wake of disappointing second quarter earnings.

It's quite possible that Facebook's shares could recover and continue to climb.

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And maybe Samantha would calm down. "The objective of that show would not be to discuss her", she said. Samantha tweeted, "Enough is enough".

The $15.8bn in net worth that Zuckerberg stands to lose in the move is equal to the wealth of the world's 81st-richest person, now Japanese businessman Takemitsu Takizaki, according to Forbes real time data.

On Thursday afternoon, Facebook watched its capitalization drop by $119 billion, lowering its valuation to $510 billion, which represents a 19 percent drop, according to CNBC.

Facebook's stock value crashed as trading opened, with share prices falling by around 18% after a hard second-quarter for the social media giants.

Shares plunged as much as 24% after Chief Financial Officer David Wehner said revenue growth rates would decline in the third and fourth quarters.

Facebook's fortunes shifted in under two hours as the company first reported revenue and user growth that missed expectations and then issued warnings about future growth and expenses.

In contrast to Facebook, Amazon on Thursday in the United States reported a record profit and forecast plowing past analyst estimates. Microsoft dropped $80 billion in 2000 as well.

It was also noted that under the circumstances, the numbers for Facebook could be much worse. During the trading day, the price went as low as $172 at 9:40 am on Thursday, as investors continued to trade shares. They believe users have woken up to Facebook's growing list of controversies and made a decision to vote with their "Log Out" buttons. However, average revenue per user in the region rose despite the lack of growth.

In Q2, Facebook's total revenue growth rate dropped about 7 percentage points compared with Q1. Facebook lost about $130 billion in market value in just two hours, its steepest stock decline ever, and the personal wealth of Facebook co-founder and chief executive Mark Zuckerberg also took a major hit, Mark Zuckerberg lost almost $17 billion in just two hours on Wednesday.

The new laws were only in effect for one month of the quarter, which means the company may feel more of an impact in the current quarter.

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