Facebook
market value shrinks by $119 billion in biggest single day loss
RT,
26
July, 2018
Facebook
shares have fallen 19 percent, wiping $119 billion off the social
media giant's value. The one-day percentage drop, the biggest ever
for any US traded company, comes after it forecast months of lower
profit margins.
Facebook
shares closed at $176.26 on Thursday, down from $217.50 the day
before.
"We
expect our revenue-growth rates to decline by high-single-digit
percentages from prior quarters sequentially in both Q3 and
Q4,” Chief
Financial Officer David Wehner said on the investor conference call
that sent the stock tumbling. The company's sales and user
growth numbers for the second quarter fell short of analysts’
projections.
Wehner
explained that Facebook intends to promote experiences
that “currently
have lower levels of monetization” and
give users more choices about data privacy, “which
may have an impact on our revenue growth.”
It’s
the second time this year that Facebook’s stock has taken a
dramatic plunge. Its shares also fell off the cliff in March in the
wake of the Cambridge Analytica scandal. The UK-based company had
gained access to the personal data of tens of millions of Facebook
users through a third-party application, and some of that data was
reportedly used to target advertising during the 2016 Brexit
referendum and the US presidential election.
As
a result of the stock tumble, Facebook CEO Mark Zuckerberg’s net
worth dropped by more than $16 billion.
One
of the Facebook investors, Trillium Asset Management, has reportedly
filed a proposal to remove Zuckerberg as chairman, according to
Business Insider. Trillium holds $11 million worth of Facebook
shares, and blamed Facebook for “missing,
or mishandling, a number of severe controversies, increasing risk
exposure and costs to shareholders” because
of Zuckerberg’s control.
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