Facebook sees biggest stock market value drop in history as growth slows

Facebook lost more than $100 billion US in market capitalization in early trading Thursday

While it is true that Facebook's loss of $119 billion in a day is the biggest one-day drop in USA stock market history, it should be noted that the large loss is partly due to Facebook's massive valuation as a company. "While it is true that Facebook's loss of $119 billion in a day is the biggest one-day drop in USA stock market history, it should be noted that the large loss is partly due to Facebook's massive valuation as a company".

Now we have real-life advertising from Facebook saying it's concerned, and looking after our privacy.

Facebook Inc (FB.O) and its chief executive Mark Zuckerberg were sued on Friday in what could be the first of many lawsuits over a disappointing earnings announcement by the social media company that wiped out about $120 billion (91.51 billion pounds) of shareholder wealth.

Facebook had already warned investors ahead of the market opening that they should expect a significant decline in growth rate, with users in Europe falling from 282 million to 279 million.

Behind it all lies the big, looming question for Facebook.

Chief financial officer David Wehner triggered the selloff when he said sales growth would continue to slow through the rest of the year.

Even after Facebook CEO Mark Zuckerberg was hauled in front of lawmakers on both sides of the Atlantic and federal agencies began to probe Facebook, prompting calls for increased regulation, investors and advertisers were undeterred, propelling the stock to new highs. And it continued to suffer fallout from investigations into Russian manipulation of the platform during the 2016 US presidential election.

Meanwhile, other observers think the technology expert may be in over his head when it comes to the many other aspects of his global business.

Dismal revenue, which initially pulled the stock down almost 9 percent on Wednesday, clearly was not the end for wounded investors. "The market seems to be questioning the quality of growth seen in the past".

"Facebook's stock has proven impervious to all manner of bad news, so it may quickly rebound", according to Wired.

Want more Glenn? Check him out on Facebook, Twitter, and YouTube. And the sell-off is poised break another record, experts said.

Specifically, Wieser says new European rules about company obligations to protect consumer privacy known as GDPR may prove to be expensive for the company in the long run.

Breaching customers' trust by using and/or distributing their personal information is reportedly having more of a negative effect on Facebook's subscriber base in Europe than in North America.

The fall came after a Facebook executive said profits margins would tumble for several years because of the cost of improving privacy safeguards and slowing usage in the Internet's biggest advertising markets, Reuters reported. Those investments weighed on the company's profitability in the second quarter and presumably will in coming quarters as well. And the company told Wall Street the numbers won't get any better this year.

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