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Facebook has worst day in Wall Street history
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Category  Business
Poster  N_Fiddledog
Hits  674
Date  2018-07-27 00:22:21


  • N_Fiddledog: ... -711674158
  • N_Fiddledog: "Facebook has made stock market history on Thursday — for all the wrong reasons.

    The social media titan lost nearly $119.4 billion in value in one day as investors, spooked by a “startling” slowdown in the company’s growth, ran for the exits.
    Facebook shares tumbled 19 percent, to $176.26."

    Investors in pension funds, hedge funds and mutual funds will surely feel some pain — but none greater than founder and Chief Executive Mark Zuckerberg, whose net worth fell by roughly $16 billion.

    That was enough to bump the tech mogul from the No.3 richest person in the world down to No. 6, at $67 billion.

    Facebook’s drop was the largest one-day loss in value of any publicly traded company in history, beating out the roughly $91 billion that Intel lost in September 2000. Adjusted for inflation, however, Intel’s drop still takes the top spot, at almost $136 billion.

    To put the scale of Facebook’s record-breaking faceplant into perspective, it would be like Goldman Sachs, Gap and Best Buy, which together have a market cap of roughly $121 billion, disappearing at once.

    Rival social network Twitter is worth about $30 billion.

    The net worth that Zuckerberg lost on Thursday is roughly equal to the wealth of the world’s 69th-richest person, Estee Lauder Chairman Leonard Lauder, according to Bloomberg.

    Thursday’s record drop was sparked by Facebook’s announcement, after the markets closed on Wednesday, that profits and revenue would be slowing — and that the number of daily active users has flatlined.

    Chief Financial Officer David Wehner revealed that he expects to see growth decelerate by “high single digits” for the rest of the year.

    At least 16 brokerages cut their price targets on Facebook following the revelation.

    Wehner attributed the slowing growth to currency fluctuations, as well as the company’s focus on “growing new experiences such as stories” and “giving people who use the services more choice around privacy.”

    “Over the next several years, we would anticipate that our operating margins will trend towards the mid-30s on a percentage basis,” Wehner added.

    In the second quarter, Facebook’s margin fell to 44 percent — from 47 percent a year ago, as it spent heavily on security and initiatives to reassure users the it is taking privacy seriously.

    In a note, JPMorgan called Facebook’s warning “startling” and speculated that the company is moving to “shift expectations to a more achievable level.”

    Barclays analyst Ross Sandler suggested in his note that Facebook lowered its predictions to not “create the perception of getting rich while their product presents issues for society.”

    The Palo Alto, Calif., tech giant is still reeling from the aftermath of the Cambridge Analytica scandal, which brought intense scrutiny to its data-sharing practices after it was revealed that the private information of 87 million users was obtained by a firm working for the Trump campaign.

    The aftermath of the late-March scandal saw Facebook shares drop nearly 18 percent — though Facebook bounced back by May. ... -711674158
  • Thanos: After the damage they caused to the entire world in the 2016 US election it would have been better justice if FB had gone belly-up completely. :evil:
  • CDN_PATRIOT: Good. Fuck that rich bastard and his bullshit. Sick and tired of billionaires and millionaires and their crap.

  • BRAH: Facebook isn't going anywhere can't say the same for Zuckerberg because he could face a motion of no confidence and be fired from the company.

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