Author Topic: Facebook stock drops 18.96% = $120 billion in market capitalization  (Read 378 times)

littleman

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Facebook lost about $119 billion of its value on Thursday, marking the biggest one-day loss in U.S. market history.

The company's shares plunged $41.24, or almost 19 percent, to $176.26 a day after the social media giant reported disappointing results. The slide is the largest decline in market capitalization in history, exceeding Intel's $91 billion single-day loss in September 2000, according to Bloomberg data.

Founder and CEO Mark Zuckerberg saw his fortune drop by $15.9 billion to roughly $71 billion. His personal loss alone, if only on paper, exceeds the value of companies such as Molson Coors and Macy's, which have market values of $14 billion and $12 billion, respectively.

Investors were spooked by Facebook's forecast showing that its number of active users is growing less quickly than expected, while the company also took a hit from Europe's new privacy laws.


https://www.cbsnews.com/news/facebook-stock-price-plummets-largest-stock-market-drop-in-history/

While it was an incredible drop for a single day I think we all saw FB's fall from grace coming.  I guess the question now is will this spill over to the rest of the tech economy?

Mackin USA

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Re: Facebook stock drops 18.96% = $120 billion in market capitalization
« Reply #1 on: July 27, 2018, 11:31:47 AM »
Twitter Crashes 15% After Users Drop
Mr. Mackin

aaron

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Re: Facebook stock drops 18.96% = $120 billion in market capitalization
« Reply #2 on: July 28, 2018, 07:48:34 PM »
Twitter let the fake accounts grow for years while they were publicly traded and unprofitable, because then they could at least claim they were investing in growth (that the product was too hard to use but they were trying to fix that problem and eventually these "eyeballs" will be monetized).

Now that they've been profitable 3 quarters in a row they can keep pruning spam. They don't need to show the fake growth now that they have actual real profits.

They've been banning over a million accounts per day

The thing the press missed was their active users were up 11%, so it was mostly just the garbage fake stuff getting torched by Twitter being used as justification to knock down the stock on an echo of the Facebook fears.

There's the shadow banning concept too, but that is a parallel topic to the total users or total active users or such.

If Twitter sees active users decline and/or ad revenue growth sharply fall, they'll probably allow a lot more spam accounts onto the platform again (if they can't profit sufficiently from the real metrics, may as well allow alternate metrics to carry the stock).