Facebook just had its worst week in the company’s history

Facebook just had its worst week in the company’s history

Shares were trading at $175.75, down about 19 per cent, nearing midday.

Facebook CFO David Wehner told investors revenue growth would decline significantly over the next few quarters, and that Facebook's operating margin would drop from 44% in Q2 to the mid-30% range over a time frame of more than the next two years.

Other prominent social media slid Thursday afternoon.

"I'm Jewish, and there's a set of people who deny that the Holocaust happened", Zuckerberg explained, according to Fox News.

Of the newer endeavors, Instagram's business model is the most mature, and likely contributed meaningfully to revenue in the quarter, analysts have said.

He subsequently backtracked from this comment after it triggered widespread public outcry.

"Facebook's stock has proven impervious to all manner of bad news, so it may quickly rebound", according to Wired. And the increased spending aims, among other things, to prevent a replay of the fake news and propaganda that Russian agents unleashed on an unguarded Facebook in an attempt to sway the 2016 presidential election. Those European privacy regulations, known as the General Data Privacy Regulation, or GDPR, went into effect with just one month left in the second quarter.

"While those actions might take time to play out, it is still possible that threatened fines associated with GDPR to Facebook or other sellers of advertising could also have the effect of spooking advertisers into changing how they use data", said Wieser, who thinks the shares should be worth $140 USA - well below Thursday's level.

Zuckerberg's status as one of the wealthiest men on the planet is dropping, and so is his company's worth. "As of Wednesday, Facebook Inc., lost over $100 billion in stock market value".

7 26 18 biggest market cap drops COTD
Business Insider Joe Ciolli Andy Kiersz data from Bloomberg

During the call, Facebook Chief Executive Mark Zuckerberg tried to recast the disappointing earnings.

The $15.8bn in net worth that Zuckerberg stands to lose in the move is equal to the wealth of the world's 81st-richest person, now Japanese businessman Takemitsu Takizaki, according to Forbes real time data.

At the stock's lowest point, more than $148 billion of the company's value - significantly more than the entire market cap of IBM ($134 billion) - had been wiped out.

The social media giant's quarterly performance in the abstract was strong, with earnings per share hitting $1.74, up from $1.32 in the year-earlier quarter.

"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".

In contrast to Facebook, Amazon on Thursday in the United States reported a record profit and forecast plowing past analyst estimates. Microsoft dropped $80 billion in 2000 as well. "As such, we would be aggressive buyers of the stock on weakness this morning".

The company said profit was up 31 percent in the second quarter at $5.1 billion as revenues rose 42 percent to $13.2 billion. Shares of Facebook fell 17 per cent in the days after news broke. They believe users have woken up to Facebook's growing list of controversies and made a decision to vote with their "Log Out" buttons.

"The guidance from management over their expectations for revenue growth to decelerate so markedly for the rest of the year did take us, and the market, by surprise", said Christopher Rossbach, chief investment officer at J. Stern & Co. Facebook lost about $130 billion in market value in just two hours, its steepest stock decline ever, and the personal wealth of Facebook co-founder and chief executive Mark Zuckerberg also took a major hit, Mark Zuckerberg lost almost $17 billion in just two hours on Wednesday.

Mobile advertising continued to to show gains, representing 91% of total ad sales, up from 87% in the second quarter of 2017.

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