Published: Sat, July 28, 2018
Finance | By Jaime Brady

Mark Zuckerberg just lost almost $16 billion in one day

Mark Zuckerberg just lost almost $16 billion in one day

"High expectations can be a remarkable burden, and the reaction is often brutal when they are missed, but the revenue miss was slight, and $13.2 billion is not to be sniffed at". Facebook's market cap was $629 billion at market close Wednesday, and ended the day Thursday at around $510 billion.

Founder and CEO Mark Zuckerberg, who has a 13 percent stake in Facebook, saw his fortune dropped by more than $12 billion in less than 24 hours, to around $74 billion.

The fallout comes after the company's announcement that growth might slow after "an avalanche of scandals involving misinformation and data misuse".

Facebook's valuation stood at $630 billion at Wednesday's closing bell.

Facebook has faced dozens of lawsuits over its handling of user data in a scandal also concerning the United Kingdom firm Cambridge Analytica.

The price target upgrades come after the e-commerce giant reported blowout second-quarter earnings. Monthly active users rose 11 percent to 2.23 billion - below most estimates of 2.25 billion.

"Facebook's stock has proven impervious to all manner of bad news, so it may quickly rebound", according to Wired.

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Still, investors weren't prepared for numerous bombshells dropped by Facebook Chief Financial Officer David Wehner. In case of the latter, Wehner noted that "total expense growth will exceed revenue growth in 2019", pushing down operating margins.

Shares closed down almost 19 percent at $176.26, wiping more than $120 billion off the company's value or nearly four times the entire market capitalization of Twitter Inc (:TWTR.N).

Some shareholders are saying Zuckerberg has gripped too much power at the company.

In North America, the daily user number was flat at 185 million, and in Europe it actually declined by three million people a day.

National Religious Broadcasters President Jerry Johnson told CBN News in an April interview that Facebook should apply the First Amendment to questions of speech; otherwise, he fears Christian and conservative voices will be silenced. It also is bracing for currency fluctuations as the dollar gets weaker.

Facebook shares have already been through a rollercoaster of ups and downs this year, with the biggest slump coming in April after it emerged data from tens of millions of users had been acquired by Cambridge Analytica. The company doesn't make as much money from Stories as it does from its News Feed and other features on its site.

Still, Zuckerberg assured investors that Facebook continues to see growth on its core platform, as well as its other properties, which include Instagram, WhatsApp and Messenger. Facebook's share price dropped by 7% after the earnings release and then proceeded to deep-dive during and after its earnings call.

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