On Thursday, Facebook FB-18.96% has lost about $120 billion in market capitalization, after its earnings report after the market close on Wednesday missed expectations on revenue and showed slowing user growth. Weak guidance also rattled investors.

The social-media behemoth’s stock lost roughly one-fifth of its value in the extended session Wednesday. The stock dropped about 7% immediately after the earnings report was released, then plummeted to a loss of more than 19% as a conference call with analysts progressed. Close to 34 million shares changed hands in Wednesday’s extended session, well above the average volume of 17 million shares for a regular trading session over the past month.

Founder Mark Zuckerberg, who has a 13 percent stake in Facebook, saw his fortune dropped by more than $US12 billion in less than 24 hours, to around $74 billion.

The plunge came one day after the company missed revenue forecasts for the second quarter and warned that growth would be far weaker than previously estimated.

Chief financial officer David Wehner warned earlier in an earnings call with analysts that revenue growth had already “decelerated” in the second quarter and would drop “by high single digit percentages” in coming quarters.

At one point during the call, Facebook shares were trading down as much as 24 per cent, an unprecedented drop for a large firm.

“The guidance, it’s nightmare guidance,” GBH Insights head of technology research Daniel Ives said. “If you look at their forecast for the second half of the year in terms of user growth, and the expense profile, it refuels the fundamental worries about Facebook post-Cambridge Analytica.”


https://kaybaba.com.ng/facebook-loses-120-billion-in-value-after-taking-record-hit-at-the-stock-market/

Zuckerberg no offence.


But FB is stale.



It's insecure.

You need to revive it.