Zuckerberg loses $16 billion in record Facebook fall

Zuckerberg loses $16 billion in record Facebook fall

Zuckerberg loses $16 billion in record Facebook fall

Facebook shares have fallen 19 percent, wiping $119 billion off the social media giant's value. It was among the largest one-day losses of market value in US stock market history. The after-hours plunge came despite Facebook also beating a consensus estimate of earnings per share of $1.72 by two cents.

But the number of people who use the network every day, representing Facebook's most devoted users, remained flat in the US at 185 million. But analysts attributed the user growth shortfall largely to European privacy rules that went into effect in May, not to the furor over the political consulting firm with ties to President Donald Trump, which improperly accessed the data of tens millions of Facebook users.

The commentary in the wake of Facebook's second quarter results has generally been pretty brutal, with most of the takes focused on reality setting in.

North American DAUs remained flat despite the fallout from the Cambridge Analytica data leak scandal and fake news issues.

As a outcome, the personal fortune of Facebook's chief executive Mark Zuckerberg fell by nearly $US16 billion.

Meanwhile, investors have also raised concerns that Facebook has reached the limit of how much advertising it can show in its news feed, before finding other places that are as effective to advertise.

Facebook reported revenue of $13.2 billion - a gain of 42 per cent but missing analyst expectation of $13.3 billion.

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

Earlier this month, Facebook revealed that a software bug that unblocked users who were previously blocked affected more than 800,000 users.

David Wehner, Facebook's chief financial officer, said on Wednesday the company's decision to give its users "more choices around data privacy" following the Cambridge Analytica scandal "may have an impact on our revenue growth".

"Nobody knows where the top is, where that growth slows down", said Phil Bak, CEO of Exponential ETFs and a former managing director of the New York Stock Exchange who said he's been warning investors of a potential sell-off in large tech stocks. If the sell-off hits those levels in Thursday trading, it will mark one the largest collapses in value ever suffered by a USA -traded company in a day.

Facebook's market value had approached $630 billion as of the close of trading Wednesday.

Read the full story at Fox News.

"It wouldn't be surprising if a couple million very irritated Brits left Facebook", says Brian Wieser, analyst with Pivotal Research.

In contrast to Facebook, Amazon on Thursday in the United States reported a record profit and forecast plowing past analyst estimates. The social network missed analysts' expectations of $13.36 billion in revenue, while Q2 2018 marked its slowest ever user growth rate.

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