Mark Zuckerberg lost £13 billion in five minutes this morning

Facebook Inc CEO Mark Zuckerberg's fortune tumbled by US$16.8 billion in late trading Wednesday

A drop in share price lowered the value of Facebook by a massive $118 billion - a record-breaking one-day drop in the value of a company.

After falling overnight on Wednesday, Facebook shares were down as much as 19.6pc at $174.78 each in early trading yesterday in the U.S., a decline that would wipe about $124bn off the company's value - or almost four times the entire market capitalisation of Twitter. The company's leaders, including its chief executive, Mark Zuckerberg, added that the trajectory was not likely to improve anytime soon, especially as Facebook spends to improve the privacy and security of users.

Facebook shares have fallen 19 percent, wiping $119 billion off the social media giant's value.

Facebook shares have been in the tank since the company released its earnings Wednesday afternoon. The company beat the profit forecast, with $1.74 per-share earnings. It was the first full financial report since Facebook became embroiled in the Cambridge Analytica scandal in March.

Splash page for the Internet social media giant Facebook.

"They're talking about currency headwinds, but more we think it's due to slower user growth given GDPR and more focus on privacy", Morningstar analyst Ali Mogharabi said.

Zuckerberg's own net worth took a significant hit as the stock fell, losing about $15.4 billion dollars according to Forbes.

"The implementation of GDPR gave a large number of Facebook users control over their privacy, and it should have been patently obvious to investors (and to us) that allowing users control would result in slightly lower engagement", he noted, alluding to Europe's General Data Protection Regulation privacy rule.

Overall, technology giants - Facebook, Apple, Google, Amazon and others - have enjoyed nearly unprecedented growth in revenue and stock price for years. Technology companies account for six of the 10 biggest companies in the S&P 500 Index.

Facebook had 2.23 billion monthly users as of June 30, up 11 percent from a year earlier.

And things are about to get worse.

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

Facebook is now down 3.2% this year.

Revenue increased 42 percent to $13.2 billion in the quarter. Wednesday may have been the first time this tension really broke into the open, probably because it threatened the one thing all investors care about: Money.

"With or without privacy issues, investors are scared that Facebook´s interactions, particularly with those under 25, are falling", Sheehan said. But the real question, he said, is whether the company can "continue to do what they are doing in the face of criticism from Wall Street".

Ben Bajarin, an analyst at Creative Strategies, calls this "new territory" for Facebook.

"Mark Zuckerberg isn't panicking", he said.

Related:

Comments

Latest news

Source Close to Demi Lovato Disputes Heroin Overdose Report
Lovato has become a leading advocate for addiction and mental health recovery services. "Every single day", she continued. Cheat Codes and U.K. act Little Mix recently released the new single "Only You", which is now No. 1 on the U.K.

Sisters Stabbed, 1 Killed In BART Station Attack, Father Pleads For Justice
Although police said there was no evidence yet the attack was racially-motivated, some demonstrators said they believed otherwise. Kaiser Medical in Richmond filed a restraining order against him after he was accused of threatening to kill an employee in 2016.

PM Narendra Modi to gift 200 cows to Rwanda
Currently, India doesn't have a resident mission in Rwanda , but is administered through the high commission in Kampala. In the education sector, Modi announced a donation of 100,000 NCERT books for school going children of Uganda.

Tesla: asking suppliers for cash back is 'standard' negotiating strategy
Tesla's share price is now down 4.22 per cent, after hitting a low of 4.3 per cent in pre-market trading this morning. The WSJ calls the sum "meaningful", and reports that the refunds are on payments made since 2016.

Xiaomi Mi A2 and A2 Lite Launched
Meanwhile, the Mi A2 Lite has a 5.84-inch FHD+ display , a Snapdragon 645 processor , 3GB of RAM, and 32GB of built-in storage. The Mi A2 is successor to the Mi A1 from previous year , while the Mi A2 Lite is a toned down version of the Mi A2.

Sony announces new smartphone camera sensor featuring 48 effective megapixels
As we all know, just increasing the pixel count doesn't automatically mean the image quality is going to be better. With the IMX586 Sony uses a Quad Bayer filter that merges four adjacent pixels together for low light shooting.

Someone Close To Kawhi Leonard Believes He’ll ‘Fall In Love With Toronto’
Ujiri said Friday the fans were not forgotten in the trade decision but it's "hard to satisfy everybody". Leonard has been clear that he plans to sign with the Lakers in free agency next summer.

Monchi claims Roma do not 'lack ambition' after agreeing to sell Alisson
Alisson played a pivotal part in the Roma side which unexpectedly reached the last four of the Champions League last season. Of course, there's more to this than just translating his Serie A numbers over to the Premier League .

US intel chief in tight spot over Trump and Russia meddling
White House Press Secretary Sarah Sanders speaks during a press briefing at the White House in Washington , U.S., July 18, 2018. The Trump administration, she said, was trying a new approach on its relationship with Russian Federation .

Donald Trump invites Vladimir Putin to U.S. despite uproar after Helsinki meeting
Trump has continued to insist that the US should try to have a good relationship with Russian Federation . Putin had both good and bad things to say about Trump in a broad speech about foreign policy.

Top Senate Democrat says Trump shouldn't meet with Putin again
In the middle of the interview, Mitchell broke the news that the White House had invited Putin for a meeting in the United States. The 12 Russians is a reference to those indicted last week by Mueller for their role in interfering in the 2016 USA election.

Meghan Markle's Sister Wants Duchess to Call Dad on His Birthday
The magazine reported Meghan wants to return to her home country before becoming a mum for the first time. I bet Grant would have been loads of fun at her half-sister's wedding after-party .

Carmelo Anthony trade grades: Thunder win big; Hawks, 76ers accomplish their goals
The 6-foot-11 forward/center averaged 7.6 points and 4.3 rebounds in 20.0 minutes and shot 37.1 percent from 3-point last season. Anthony has told people for more than a week that he expects to wind up with the Rockets , according to a league source.

Joe Hart: Pep Guardiola wants 'solution' for Manchester City goalkeeper
Jorginho played under Maurizio Sarri at Napoli and Chelsea's new head coach was keen to be reunited with him at Stamford Bridge. City play Chelsea in the Community Shield on 5 August before opening their league campaign at Arsenal a week later.

Amazon workers strike in Europe to coincide with Prime Day
Retail think tank Coresight Research predicted that sales will reach $3.4 billion this year, about $1 billion more than last year. Australia's inaugural Prime Day sale reportedly trumped Amazon forecasts, with sales exceeding Boxing Day on the first day.

Other news