Published: Mon, July 30, 2018
Finance | By Cynthia Curry

Facebook Might've Just Had The Worst Day In Stock Market History

Facebook Might've Just Had The Worst Day In Stock Market History

On Thursday, Facebook share prices slashed approximately 20% that roughly amounts to $120 Billion of company's shareholders capital.

Facebook had the largest-ever loss of value in one day for a United States traded company.

Kacouris said the marketplace was "shocked" when "the truth" began to emerge on Wednesday from the Menlo Park, California-based company.

The lawsuit seeks class-action status and unspecified damages.

Yet the decline merely returned Facebook shares to a level last seen in early May.

The company also said revenue growth from emerging markets and the company's Instagram app, which has been less affected by privacy concerns, would not be enough to fix the damage.

Both the slower growth forecast and heavier spending reflect problems largely of Facebook's own making. Now, it is investing heavily on fixing those problems.

Facebook is also battling several other suits relating to the handling of user data in the Cambridge Analytica case. Many of those lawsuits have been reportedly consolidated in the federal court in San Francisco.

Thursday's plunge also hit Zuckerberg's bottom line.

The American technology entrepreneur, according to Forbes, is now worth $77.6 billion.

Alphabet revenues hit $32.7 billion on strong ad sales
The shares rose as much as 5.3 per cent, the most in nearly nine months, to US$1,275 at the market open in New York Tuesday. The company's CEO Sundar Pichai said it was too early to understand the impact of the fines on Android's operations.

Buffett now ranks third among the world's billionaires, while Zuckerberg is sixth.

According to Reuters, Facebook is facing yet another legal issue after its recent stock plunge.

The previous record drop was by Intel in September 2000, when it lost $91 billion in market capitalization. The decline even left Facebook CEO Mark Zuckerberg poorer by over $16 billion, wiping his gains for this year.

"We own it for its leadership in the tech industry", he said.

The S&P 500 technology index fell 2.0 per cent, the most among the major S&P sectors.

Zuckerberg, on Wednesday, July 25, 2018 lost $16.8 billion in nearly two hours as the Facebook shares tumbled.

For the week, the Nasdaq shed 1.1 per cent, but the S&P rose 0.61 per cent.

After the Facebook had reported decline in company's second- quarter earnings, many of its investors dumped its shares.

As expected, most investors grumbled, though some were happy especially since the stock surged.

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