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

The Facebook logo is displayed at the 2018 CeBIT technology trade fair

Siva Vaidhyanathan, a media studies professor at the University of Virginia and author of the new book, "Antisocial Media: How Facebook Disconnects Us and Undermines Democracy", dismissed the significance of the stock plunge. The lawsuit was filed by a shareholder of the social networking giant.

The loss is the biggest one-day wipeout of individual wealth ever recorded on the ranking, which started tracking the world's biggest fortunes in 2012.

The complaint was courtesy of James Kacouris, who filed the lawsuit in Manhattan federal court. The report showed slower-than-expected user number growth and ad sales.

Mr Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company. The company was worth over 630 billion dollars the previous day.

Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, in recent years has trimmed, but not eliminated, the amount of Facebook shares in his clients' accounts, and he said he sees the company as a three-year investment.

The lawsuit is designed for class-action status and seeks unspecified damages.

For numerous world's richest people, most especially Africa's billionaires, losing $16.8 billion in a day would be a wipeout.

The earnings covered the company's first full quarter since the Cambridge Analytica privacy scandal erupted. Many have been consolidated in the federal court in San Francisco.

Thursday's plunge also brought bad news to Zuckerberg as he hit the bottom line.

Mr Buffett now ranks third among the world's billionaires, while Mr Zuckerberg is sixth. Last week had not been good for one of the most popular social media company, Facebook as it released biggest drop in its share prices in one single session.

On the eve of Zuckerberg's scheduled testimony past year, Facebook withdrew the proposal, which would have let him keep control of the social media company even while selling shares to fund his philanthropy. Scott Kessler, a representative from CFRA Research commented on the issue: "Legal/regulatory developments have led to changes meant to support FB's platform and users, but they will notably restrain growth and profits for at least the next couple of quarters, in our opinion".

For Brian Wieser, an analyst from Pivotal Research Group, "it's never an issue until things go wrong". It is, in fact, inevitable.

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