Facebook's US$119 billion one-day loss makes United States history

Facebook suffers its worst loss ever in history

Facebook faced the biggest one-day wipeout in United States stock market history of $119 billion, a day after executives forecast years of lower profit margins.

According to Business Insider, a Facebook investor has drawn up a new proposal to oust Mark Zuckerberg as chairman, 10 months before the social networking giant's next shareholder meeting.

Previously, since the announcement of the Cambridge Analytica debacle earlier this year, Facebook's stock price had fallen, but had since more than recovered.

Facebook Inc fell short of analysts' estimates for monthly active users on Wednesday and reported lower-than-expected quarterly revenue, months after the social network became embroiled in a data scandal affecting millions of users.

Facebook shares have already been through a rollercoaster of ups and downs this year, with the biggest slump coming in April after it emerged data from tens of millions of users had been acquired by Cambridge Analytica.

Facebook also warned that the toll would not be offset by revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns. As at 11pm Thursday (Singapore time), it was about 19 per cent down at about US$176, dragging down with it the rest of its "FAANG" peers.

At times, it has seemed as though Facebook can't quite decide where its values really lie.

On a call after the results were issued, Zuckerberg reportedly said: "We are investing so much in security that it will have a significant impact on our profitability".

For Q2, Facebook's daily active users increased 11% year-over-year, to 1.47 billion on average during the month of June. Analysts were expecting 2.25 billion, according to FactSet.

Gene Munster, a venture capitalist at Loup Ventures, said in an email that Facebook is "entering a new period" where declining user growth will translate to slower revenue growth.

The firm also plans to spend billions to improve the way it monitors content, tracks advertisers and treats user data - areas where it has faced regulator scrutiny.

Cheddar tech reporter Alex Heath wrote that Zuckerberg has sold over $2.6 billion worth of Facebook stock since the company reported its Q1 earnings in April.

"High expectations can be a remarkable burden, and the reaction is often brutal when they are missed, but the revenue miss was slight, and $13.2 billion is not to be sniffed at".

European advertising revenue growth in Europe "decelerated more quickly than other regions", partially because of the new European privacy laws, Wehner said. But the real question, he said, is whether the company can "continue to do what they are doing in the face of criticism from Wall Street". USA and Canadian traffic was flat from the previous quarter, while Europe shed 3 million average daily users quarter over quarter, down to 279 million. So far, WhatsApp doesn't show ads, and its founders Jan Koum and Brian Acton left Facebook amid disagreements over advertising and other issues.

Related News:



Most liked

Demi Lovato treated with Narcan after apparent overdose, ABC News confirms
In 2010, she entered rehab, where she was treated for bipolar disorder, bulimia, self-harm and addiction. Initial reports from USA news site TMZ claimed she was hospitalised after suffering a heroin overdose.

Stone from Jerusalem's Western Wall crashes into prayer area
Director of the Israel Antiquities Authority, Israel Hasson, said they could not rule out more stones falling from the walls. One of Islam's holiest sites , the Noble Sanctuary, where al-Aqsa mosque and the Dome of the Rock stand, lies above.

Cohen Tapes Erase Attorney-Client Privilege, 'Indication of a Fraud'
They also talk about mundane matters with the campaign, such as polling numbers. Ms McDougal sold her story to the National Enquirer , which never published it.

Uber, Lyft suspend driver who recorded St. Louis passengers
There were about 700 rides given by Gargac since March through Uber and Lyft and nearly all of them were recorded, the St. But the nature of his recordings and the discussions around them that took place on Twitch has drawn criticism.